Housing Prices over 60 Years
August 25, 2010 Leave a comment
More evidence that home prices have been, more or less, constant since WWII. The bubble was completely unusual so be sure that your house will not be a good long-term investment. There is a good chance that someday the government will decide that it is a huge give away to subsidize people’s homes with large interest rate deductions. Imagine when the choice is between the home deduction and paying for medicare and social security in the future. The latter two are likely to win in the future as the deficits have to be faced realistically.
…home prices have actually been pretty steady over time. In fact, if you look at a fifty-year period after World War II, home prices were absolutely steady. In 1947 the Case-Shiller index stood at 110, and in 1997, adjusted for inflation, it stood at 110 again.