I don’t see any flattening in the mid 70s. Rates went up from 1971-1974 and price went up in 1971-1974. Rates went down between 1974-1977. Price went up between 1974-1977. Rates doubled in 1977-1981 and CA median home price went up 72%. So, between 1968-1989, there weren’t a single year where the median home price in CA declined (I didn’t count 1984, since it was basically flat). In 1980, CA median home price was $99k and by 1990, the median home price $193k. So, were did you get price fell sharply between 1980-1990?
Like FormerSanDiegan said, I don’t see any correlation or causation between rates and price. Do you have data to back up your assertion that there is one?[/quote]
Nationally. Housing prices didn’t move much at all from about 1960 to 1975. They rose sharply through the end of the decade.
Prices did go down in the early 80’s. At least they did in San Diego. Builders got killed with unsold inventory and high interest rates. I was one of them.
I mistyped or misedited, I changed that paragraph a whole bunch. Interest rates peaked in 1980 and fell through the next decade.
