January 15, 2014: Last year on 9/11/13, I posted a chart showing prices had surged over 20% then I wrote, "Over the past six months, the median price for a single-family home has shot up at the fastest pace on record. Warning, surges over 10% are "often" followed by stagnation or falling prices."
Sure enough, that was the peak and prices are down about 10% to where
Chartoftheday has now drawn a lower support channel. It is too bad
they didn't update their rate of change lower graph but you can see in
the old article that -10% is an historically large decline.
Yesterday Chartoftheday.com1
wrote:
For
some perspective on the all-important US real estate market, today's
chart illustrates the inflation-adjusted median price of a single-family
home in the United States over the past 44 years. There are a few
points of interest. Not only did housing prices increase at a rapid rate
from 1991 to 2005, the rate at which housing prices increased --
increased. All those gains and then some were given back during the
following 6.5 years. Over the past two years, however, the median price
of a single-family home has trended significantly higher. More recently,
the inflation-adjusted price of the median single-family home has declined and is now testing support of its two-year upward sloping trend channel.
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