Vanishing dollar helps hide it: Chart of the Day - Home prices down 38% since 2005 peak

Think real estate prices are starting to rebound? Want to know what a difference the vanishing-in-value dollar (a/k/a inflation) makes in the equation? First I'll show two monthly charts, one for IYR (a real estate ETF that's run up since 2009 like everything else), and the U.S. Dollar index ($USD) which looks like it's thrusting toward 66 (hmm, interesting number) after breaking down from a massive triangle. Then we'll see the "Chart of the Day" commentary and big-picture, long-term, inflation-adjusted chart showing how "real" home prices compare, from http://www.chartoftheday.com/20110422.htm

Here are the monthly charts of IYR and $USD:

And now, the inflation-adjusted chart from "Chart of the Day" - maybe home values solidify at support soon, if only for a sustained bounce (e.g., a big wave 2 or B up if you're longer-term bearish; which rebound along with a lower dollar simultaneously, would make many folks happy), before another potential leg yet lower down the road...?

Chart of the Day - Home prices down 38% since 2005 peak For some perspective on the all-important US real estate market, today's chart illustrates the inflation-adjusted median price of a single-family home in the United States over the past 41 years. Not only did housing prices increase at a rapid rate from 1991 to 2005, the rate at which housing prices increased -- increased. That brings us to today's chart which illustrates how the inflation-adjusted median home price is currently 38% off its 2005 peak. That's a $100,000 drop. In fact, a home buyer who bought the median priced single-family home at the 1979 peak has actually seen that home lose value (8.5% loss). Not an impressive performance considering that more than three decades have passed. It is worth noting that the median priced home is currently in the bottom half of a price range that existed from the late 1970s into the mid-1990s. Notes: - Should you invest in real estate or stocks? The answer may surprise you. Find out now with the exclusive & highly regarded charts of Chart of the Day Plus. Rate today's Chart of the Day Excellent 5 4 3 2 1 No good By voting every day you help us get you the charts you want to see. Quote of the Day "It ain't over till it's over." - Yogi Berra Events of the Day April 22, 2011 - Good Friday - Earth Day April 24, 2011 - Easter April 27, 2011 - Administrative Professionals Day April 28, 2011 - Take Our Daughters & Sons to Work Day - NFL Draft begins (ends April 30th) April 29, 2011 - Arbor Day May 01, 2011 - May Day Mailing List Info Chart of the Day is FREE to anyone who subscribes. .... Journalists and bloggers may post the above free Chart of the Day on their website as long as the chart is unedited and full credit is given with a live, do follow, text link to the Chart of the Day homepage http://www.chartoftheday.com .... Chart of the Day is provided to subscribers without warranty of any kind and accepts no responsibility for its accuracy or for any consequences of its use.