US Median Home Price 1965-2009
Gray area is “Inflation” period of 1972-1983, 201% total increase in home prices during that 12 year period, or 10.5% annually.
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Consumer Price Index 1965-2009
Gray area is “Inflation” period of 1972-1983, 147% total increase in CPI during that 12 year period, or 8.5% annually.
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CPI vs. Median Home Price 1972-1983
Close up of the gray area, home prices seemed to outpace inflation a bit during the peak inflation late ’70s early ’80s.
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CPI vs. Median Home Price (y/y change) 1972-1987
Extended the view a bit, on the way up Home Price change peaked before CPI (’72) and bottomed first as well (’80, ‘82). Home prices off to the races again in the mid-late ’80s.
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30-yr Fixed Mortgage rates vs. Median Home Price 1972-1987
Home price gains slowed as rates ramped, but even with 18% rates annual home price change only briefly declined.
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30-yr Fixed Mortgage Rates vs. Median Home Price 1972-1987
As shown above, high rates slowed down increases but declines did not last long and prices started going up again when they lowered rates.
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