Chart of the day: Home Prices versus Inflation

By Edward Harrison On May 27, 2008

When looking at the 20 biggest markets in the US, home prices have risen at a rate far above the rate of inflation since Jan. 2000. Prices would need to fall 26% nationally to move back to the trendline.

However, looking at the 10 biggest markets, using data back to 1987, the inflation trendline shows that prices actually need to fall further — 28% to revert back to trend.

Edward Harrison 7783 posts 575 comments

Edward Harrison is a senior Editor at Bloomberg. He is also the founder of Credit Writedowns newsletter, a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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