Home building leaders mused late in the past decade that U.S. housing was in the middle of a "lost decade." Turns out they were right, almost.
CoreLogic analyst Molly Boesel here delves into the latest download of trends from the CoreLogic Home Price Index, noting both nominal and inflation-adjusted "real" home price trends since the 2006 peak and the March 2011 trough. Boesel writes:
Looking at the CoreLogic HPI in real terms shows a much deeper drop from the peak and a much longer recovery time. The real HPI decreased a total of 41.1 percent from the peak in March 2006 to the trough in February 2012, and rose 34.9 percent from the trough to September 2015. In September 2015, the real HPI was 20.2 percent below peak level. Hence, the Wall Street Journal piece, noting that Real Home Prices Could Take 17 Years to Return to Peak."