12/29/2020 12:05:00 PM
It has been over fourteen years since the bubble peak. In the Case-Shiller release today, the seasonally adjusted National Index (SA), was reported as being 24.3% above the previous bubble peak.
However, in real terms, the National index (SA) is still about at the bubble peak (and historically there has been an upward slope to real house prices). The composite 20, in real terms, is still 8% below the bubble peak.
The year-over-year growth in prices increased to 8.4% nationally.
Usually people graph nominal house prices, but it is also important to look at prices in real terms (inflation adjusted). Case-Shiller and others report nominal house prices. As an example, if a house price was $200,000 in January 2000, the price would be close to $291,000 today adjusted for inflation (45%). That is why the second graph below is important - this shows real prices (adjusted for inflation).