-
US Housing: A Somewhat Similar Period
A period that is somewhat similar to the current housing market was in the late 1970s. House prices increased 14.7% in 1977, 15.7% in 1978 and 13.9% in 1979 (Case-Shiller National Index). Over the last 12 months, house prices have increased 13.2%. And currently demographics are favorable for home buying with a large cohort moving into their 30s, just like in the late 70s, with the leading-edge boomers turning 31 in 1977. But there are stark differences too. First, inflation was very high in the late '70s, averaging close to 9% over those 3 years. Inflation over the last year was up 5.0%, but that was mostly over the ... (full story)