Chart of the Day 04/21/2011
Median Single Family Home Price

Today's chart of the day takes a look at median home prices going back to 1970, adjusted for inflation.

Keep in mind that the chart is displaying median home prices and depending on other factors, home values in your area may or may not be in line with the results below. As an example, I purchased my last home in 2002 and prices in that neighborhood are comparable with prices around 2004 today in April, 2011.

For people with cash or who are generally in a good position to buy a home, there are good buys out there. I recently heard about someone who purchased a 1 bedroom condominium next to a university in Florida for $15,000. Compare that to the cost of the room fees for a student at the university itself and you'll be saving a good amount of money plus have a future rental property.

Longer term, the unemployment rate where it is and based on the chart below, I wouldn't be surprised at all if prices still have lower to go from here.

For some perspective on the all-important US real estate market, today's chart illustrates the inflation-adjusted median price of a single-family home in the United States over the past 41 years.

Not only did housing prices increase at a rapid rate from 1991 to 2005, the rate at which housing prices increased -- increased. That brings us to today's chart which illustrates how the inflation-adjusted median home price is currently 38% off its 2005 peak. That's a $100,000 drop.

In fact, a home buyer who bought the median priced single-family home at the 1979 peak has actually seen that home lose value (8.5% loss). Not an impressive performance considering that more than three decades have passed.

It is worth noting that the median priced home is currently in the bottom half of a price range that existed from the late 1970s into the mid-1990s.

Chart courtesy of Chart of the Day
Chart of the Day 04/21/2011 - Median Single Family Home Price

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