The US National Home Price Index was down 19% year-over-year. But beyond that here are a few items worth noting:
- On an inflation adjusted basis (chart below) the index is down 36% from the peak.
- To get to the last inflation adjusted bottom in housing prices, we have another 16% to go.
- The previous correction that started in the late 80s and bottomed in the mid 90s was 16% (20% milder than the current correction thus far).
- The previous correction took 7 years to hit bottom; we are 3 years into the current correction.
- If you bought a house at the last peak (end of 1989), it took you over 10 years to get your money back (and you would be just above break even now - 20 years later).
- On average if you bought a house any time after 2000, you've lost money (adjusted for inflation).