Tuesday, May 26, 2009

More On Home Prices

I have commented in the past that one should not expect home prices to outperform inflation in the long run. I stand by that comment.

The above graph tracks CPI versus the Case/Shiller 10 City index. Both indices have been reindexed to 100 on January, 1987 (start date of Case/Shiller). I think that the housing market bottoms when the 2 lines meet again.

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