“The median loss was $23,500 on a house sold for $203,000, originally purchased for $226,500.”
Good article. It shows that home prices pulled back approximatley 10%. I see predictions on this site of a 50% decline. I think it could pull back 20%. The same thing will happen, people won’t be able to “move-up”.
This chart has different info. It appears that the MEDIAN homebuyers experienced a 10% decline from 1991 to 1995. You would have been underwater until 1998.
As far as the reference to GOLD is concerned, it shows that it is a very innefective hedge against inflation. Even if you lived through a few housing peaks and troughs in the last 22 years, you still would have done better owning a home rather than gold.
