I previously detailed that CPI may overstate inflation for an individual who:
- does not own a home
- would like to own a home
- will likely soon buy a home
As can be seen below, the Case-Shiller Price Index flipped negative year over year for the first time in April as today's Case-Shiller release shows further deterioration, with the Composite 10 dropping over 16% year over year.
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In looking at the Composite 10's five year rolling returns (annualized), even after the huge downturn in prices, returns over the most recent five year period are still positive at ~5% / year. A 5% return over this period is still pretty significant considering current housing fundamentals and tells me there is still room for further deterioration.
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I'd just like to say that this is one of the most fascinating graphs I've seen in a while. please keep tracking this.
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