The problem with this is they assume CPI represents inflation.
Median homeprice in 1980 was $53K and today is $417k.
https://dqydj.com/historical-home-prices/ Let's be fair, and assume the housing market is genuinely overheated, and fair value is $300k. By that metric the dollar is worth 1/6 of what it was in 1980. That means that $850 high is really $5100 in today's dollars.
If fair value for the median home is $250k, then that would be a $4250 high in 1980.
Or if the housing market needs a 50% correction, that high is $3400. But I assume a 50% correction will be an overshoot and not fair value, if somehow such a correction does happen.
The problem with this is they assume CPI represents inflation.
Median homeprice in 1980 was $53K and today is $417k. https://dqydj.com/historical-home-prices/ Let's be fair, and assume the housing market is genuinely overheated, and fair value is $300k. By that metric the dollar is worth 1/6 of what it was in 1980. That means that $850 high is really $5100 in today's dollars.
If fair value for the median home is $250k, then that would be a $4250 high in 1980.
Or if the housing market needs a 50% correction, that high is $3400. But I assume a 50% correction will be an overshoot and not fair value, if somehow such a correction does happen.