Not quite correct. The CS20 home price index is...
- 7% lower than the 2006 peak in nominal terms.
- 22.6% lower than the 2006 peak in inflation-adjusted terms (adjusted by the BLS's US CPI-urban NSA)
- 27.3% lower than the 2006 peak as a percentage of wages (adjusted by the BLS's average hourly earnings paid to private-sector employees)
Together with massively lower mortgage rates (3.9% rather than 6.2% for a 30yr fix), the situation is nowhere near as bubblicious as 2006. We are maybe around 2003 levels - easily sustainable.
- 7% lower than the 2006 peak in nominal terms.
- 22.6% lower than the 2006 peak in inflation-adjusted terms (adjusted by the BLS's US CPI-urban NSA)
- 27.3% lower than the 2006 peak as a percentage of wages (adjusted by the BLS's average hourly earnings paid to private-sector employees)
Together with massively lower mortgage rates (3.9% rather than 6.2% for a 30yr fix), the situation is nowhere near as bubblicious as 2006. We are maybe around 2003 levels - easily sustainable.