FYI: A podcast listener asks:
I know I shouldn’t expect home prices to crater like they did after 2008, but I’m wondering if there is any reasonable expectation that home prices will eventually level off or drop enough to make a buying opportunity. I just want to buy the dip.
We discussed this question on the podcast this week but I decided to do some digging into the numbers to quantify how cyclical the real estate numbers can be in this country. The numbers were fairly surprising but require a wheelbarrow of salt.
The Case Shiller Real Home Price Index goes back to 1890. I ran the numbers to show the year-over-year change in this index to see how often it was positive or negative and what the range of outcomes looks like. I’m not sure how accurate the data is going back that far but the numbers are only given on an annual basis from 1890-1952 and monthly from 1953 on. So I’ve broken down the numbers into those two periods
Regards,
Ted
https://awealthofcommonsense.com/2018/10/how-often-can-you-buy-the-dip-in-housing/
