Chart Of The Day Housing Prices Part II

From Chart Of The Day:

{I} t was reported {late last week} that the median price of a single-family home dropped 2.3% in August. The stock market sold off on the news. For some perspective into the all-important US real estate market, today's chart illustrates the US median price of a single-family home over the past 39 years. Not only did housing prices increase at a rapid rate from 1991 to 2005, the rate at which housing prices increased – increased. That brings us to today's chart which illustrates how housing prices are currently 30% off their 2005 peak. In fact, a home buyer who bought the median priced single-family home at the 1979 peak has seen that home appreciate by a mere 4%. Not an impressive performance considering that three decades have passed. Over the past two months, single-family home prices have resumed their decline and remain (until proven otherwise) in an accelerated downtrend.

Ultimately I think this is bullish because this decline is making a home more affordable for more people. I've noticed a lot more young people around my town lately and that is presumably due to the fact that a home is now more affordable for them. However, it is still a drag on the current economy & is likely to be so until probably some time late next year.

Link: https://www.chartoftheday.com/ {Subscription required}

*I am long certain homebuilder ETFs for certain client accounts.