5/15/2011 02:41:00 PM
On Friday, Dave Altig asked Just how out of line are house prices?. Dr. Altig s post featured both a price-to-rent graph and the following real house price graph based on Professor Robert Shiller s work (credits: the graph is from Barry Ritholtz s The Big Picture blog and is an update of a New York Times graphic with a possible projection by Steve Barry).
Click on graph for larger image in new window.
For the underlying data for the NY Times graphic, please see Professor Shiller s Irrational Exuberance website.
This graph has suggested to many observers that house prices track inflation (i.e. that house price adjusted for inflation are stable - except for bubbles).
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