US housing remains in doldrums
The latest round of US housing data shows the real estate industry continuing to struggle. For some perspective, Chart of the Day provides the graph below showing the US median price (adjusted for inflation) of a single-family home over the past 41 years (top section), as well the annual percentage change in home prices (also adjusted for inflation) (bottom section).
“Prior to the financial crisis, the inflation-adjusted median home price rarely declined more than 5% in one year (gray shading),” said Chart of the Day. “It is also very important to note that due to a large number of distressed properties, a high unemployment rate and stagnant wages, the inflation-adjusted median home price has declined 7.9% over the past year – an annual decline larger than any that occurred during the 35 years prior to the financial crisis.”
There may already be some property bargains around, but housing in general still has a long convalescence process ahead.
Source: Chart of the Day, May 20, 2011.
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