This is a graph that was created by data that is published by Case-Shiller on a monthly basis. The numbers are normalized so that they both have the same starting point. The graph clearly shows the massive run-up and burst in housing prices in ONLY certain areas. Places like Cleveland that never had the huge bubble in the first place are simply “adjusting” to their fair market value, not “crashing” like many of the previously HOT markets.
What I get from this graph is that when these lines drop near to or below the 100 line it would be time to jump back in.
But I could be wrong! Your guess is as good as mine.
Advertisement
