USA House Prices: Nominal, Real, and Price-to-Rent Values
Below are three graphs from Calculated Risk showing nominal prices (as reported), real prices and a price-to-rent ratio:
Nominal House Prices
The first graph shows the quarterly Case-Shiller National Index SA (through Q3 2011), and the monthly Case-Shiller Composite 20 SA and CoreLogic House Price Indexes (through September) in nominal terms (as reported).
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Real House Prices
The second graph shows the same three indexes in real terms (adjusted for inflation).
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Price-to-Rent
This graph shows the price to rent ratio (January 1998 = 1.0).
On a price-to-rent basis, the Composite 20 index is back to June 2000 levels, and the CoreLogic index is back to May 2000. In real terms – and as a price-to-rent ratio – prices are mostly back to 2000 levels and will probably be back to 1999 levels in the next few months.
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