The Curious Capitalist - TIME.com

Case-Shiller on house prices: The extended dance remix

Here, as promised, is what the chart looks like for the 14 metropolitan areas for which the S&P/Case-Shiller Home Price Indices go all the way back to 1987 (that is, before the last real estate bust, which sure doesn't look all that dramatic on the chart, except maybe in LA):
14cities.gif

A couple of comments: First, keep in mind that this chart shows the increase since Jan. 1987 in each of these metro areas, not that actual relative prices of the different metros. Second: How about that Portland, Ore.?


13 Comments to “Case-Shiller on house prices: The extended dance remix”

  1. Corinthia Says:

    Portland OR -- there are no jobs, and cost of living is high. But folks keep moving here, and retiring here ... and driving the housing cost up.

    I guess they visit and decide to stay -- I've been told we are like a mini-Boston without the excessive snow.

    Perhaps if Time quit putting us up as a top city to live in, our housing would stop being so expensive. Think San Fransico & Seattle prices, but mid-west pay levels.

    As our old governer use to say, please visit but don't stay.

  2. tree hugger Says:

    Yes people keep moving here but the real reason home prices keep rising regardless of what else goes on in the market is the urban growth boundary. It also keeps the farmland surrounding the city affordable. Every state should have them

  3. skyroach Says:

    Justin, do you have the ability to generate a plot that shows the actual prices relative to inflation? I think that may be more telling, and make the bust of circa 1991 look more dramatic.

  4. Justin Fox Says:

    I have the ability (and the technology), skyroach. And I actually thought of that as I assembled the chart but just didn't have the energy. That'll be tomorrow's project, I guess.

  5. Jim Says:

    Financial institutions have not been following best practices when it comes to lending out money. The NewsVisual story on Wells Fargo http://www.newsvisual.com/newsvisual/2007/11/can-experience.html makes clear that larger financial institutions can make prudent lending decisions, at least according to that bank's CFO. They need to avoid seeking too much market-share, though.

  6. Anonymous Says:

    RE: Portland

    Feh. Old people's joints can't take the cold, damp climate here. Once hard recession hits and the novelty wears off Portland will come back to earth.

    Don't believe the hype.

  7. Anonymous Says:

    I pray for rain - ice cold, drip,drip,drip - type rain (it's what we get here) every day. And no, I'm not a renter.

  8. Clint8200 Says:

    We are a derivative of the CA housing market. People sell their homes down there and put down large down payments up here. Now that CA is in a deep freeze Portland lost its population growth variable.

    One fifth of boom-time loans were I.O in Oregon...we are no different than anywhere else.

  9. PDX_Dweller Says:

    Clint8200: Actually, the share of interest only loans in Portland itself was more like 30% in recent years.

    The Urban Growth Boundary in Portland may have some effect on prices, but it's generally been overstated. There's still plenty of land available inside the UGB - it's not like we've reached saturation all the way out to the 'burbs. Also, you have to consider that places like Seattle, SanFrancisco and SanDiego have natural growth boundaries: water for the first two and desert&fire prone hills for SanDiego.

    And as has been pointed out: the jobs picture here is not that great.

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About Curious Capitalist

Justin Fox

Justin Fox is TIME's business and economics columnist. This is his blog. Read more

Barbara Kiviat

Barbara Kiviat just celebrated her 5 1/2-year anniversary covering business and economics for TIME magazine. Read more

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