It is a roller coast visualization of home prices since 1890.

Inflation adjusted home values with population chart

I came across this while preparing for an upcoming FTHB seminar this weekend. You have to watch it.

Robert Shiller of Home Price Index fame . I have not followed him, but I plan on adding him to my regular reading list. (A list much expanded since joining AR). He seems to have more than a clue.

The years are indicated periodically in the lower left blue bottom of the video.



Home Price Roller Coaster

http://www.speculativebubble.com/videos/real-estate-roller-coaster.php

The video was on this blog.

http://www.consumerismcommentary.com/category/real-estate/

Of course there was an Active Rain blog showing in the search from Ann Patroni. http://activerain.com/blogsview/461660/A-History-of-Home

Given this information, I wonder if the problem with the mortgage crisis is not risky loans, but over valuation. And this was caused by over heated demand for housing, brought on by the significantly increased pool of qualified buyers from stated and subprime credit programs. The rapid valuation increase was not sustainable, once the market came more in balance again. Programs did exist that compounded the heated valuation problem - neg am, interest only, option ARMs.

Here are the chart of the data used in the video.

Home Index chart 

 

 

 

 

 

 

 

 

 

 

 

 





On a side note, an added benefit for me as I was surfing to get more details on the 1890 to present Home Price chart was this link to online classes at Yale.

Are you kidding me, take some time to look at what is available online on this site.

http://oyc.yale.edu/

I love the Internet.

Now I need to get back to the FTHB seminar. The seminar is 11:00 AM at Owens Barbecue, 1407 Citico Avenue, Chattanooga. Call for more details.

Richard Smith
Home financing in Tennessee, Georgia, and Alabama.
Experience matters when it is your home loan.

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6 Comments on Video Home Price RollerCoaster - Shiller Home Price Index 1890 to 2007

Richard:  Gary Keller (of Keller Willaims fame) was preaching these numbers to KW agents about 2 years ago saying we were posied for a major adjustment nationwide.  He was right!  And we have a good bit of adjusting to do.  When you couple this with national housing affordability indexes and it is easy to understand why the slowness is now in the market and why prices are falling nearly everywhere in the USA.

08/07/2008 08:10 AM by Steve Homer (The HBH Group (Keller Williams affiliate))

HI RICHARD!

I've seen this video before, it's pretty neat.  All I can say is hang on & enjoy the ride no matter how long or short it is!

Have a great day!

08/07/2008 09:45 AM by YVETTE SMITH REALTOR IN WILLIAMSBURG VA WILLIAMSBURG VIRGINIA HOMES FOR SALE (LIZ MOORE & ASSOCIATES)

Steve,

I want to be someone who is informed and insightful and proactive enough to anticipate trends. Learning to look is step one. Now I need to learn where to look.

Thanks,

Richard

08/07/2008 11:42 AM by Richard Smith Mortgages Home Loans FHA TN GA AL (American Acceptance Mortgage, Inc)

Yvette,

It is a neat video, especially impacting at the end. I was thinking that this video must have been posted on AR sometime previously. I did see the post from Ann with the chart. But I thought it could be posted again.

If we are going to move back to the levels more inline with 100 year range, then the view seems to indicate a little more drop.

There are some other figures. I plan to spend some time this weekend getting proficient in chart making using Excel.

The visual presentation is so helpful.

Hope things are going well in Williamsburg.

Richard

08/07/2008 11:47 AM by Richard Smith Mortgages Home Loans FHA TN GA AL (American Acceptance Mortgage, Inc)

Very good information... this time is just very difficult to predict- some of the numbers are just so counter cyclical.

08/10/2008 09:45 AM by Chuck Willman, Arizona Realtor®, ABR, TRC (Gentry Realty)

Counter cyclical is a good description Chuck.

Thanks

Richard

08/10/2008 08:47 PM by Richard Smith Mortgages Home Loans FHA TN GA AL (American Acceptance Mortgage, Inc)

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Loan Officer: Richard Smith Mortgages Home Loans FHA TN GA AL (American Acceptance Mortgage, Inc)
Richard Smith Mortgages Home Loans FHA TN GA AL
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