Sunday, June 21, 2009

Real housing prices vs. the unemployment rate

Red: the unemployment rate
Blue/green: inflation-adjusted house prices

Source: Calculated Risk.

4 comments:

  1. what is this supposed to be revealing to us?

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  2. That in the last 2 high unemployment cycles peak unemployment was approximately coincident with housing price bottoms. but its clearly not a very robust relationship. check the link to CR, he has a more retailed explanation.

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  3. Does anyone know if the peaks and valleys for DC proper roughly coincide with the DC MSA?

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  4. Unemployment rate is the absolute indicator of market sentiment.

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