I just now came accross the most interesting graph I’ve ever seen about the current housing boom! It’s amazing. It’s a graph showing the index of the average home price in the United-States adjusted for inflation.

Looking at it quickly, ignoring the recent run-up, it’s already very interesting. Prices declined during World War 1, the Great Depression, and againg during World War 2. It also clearly shows the 1970’s and 1980’s real estate boom and bust cycles.

However what’s really interesting is the incredibly major spike for the 2000’s!!! All I can say is WOW!!! Assuming those numbers are correct, that’s incredible! It really shows the effects of having 30-50% price increases year over year. It just didn’t make sense. It reminds me a lot of the tulip bulb boom, the first real market boom in recorded history.

All I can say is that’s quite an adjustment we can look forward to. For those who have cash, the real estate market will afford many amazing deals in the near future as the prices correct themselves!

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