Traditionally, houses have been viewed as "hard assets." However, as one can see above, their recent (from a long-term historical perspective) price pattern seems more geared to that of a "paper asset" - i.e. strong performance during the '80s and '90s, while significantly underperforming Gold for roughly 7 years.
There are many other observations and interpretations that can be made from this ratio as well. It certainly "frames" home prices in a different light, especially from an investment standpoint.
Going forward, it will be interesting to see how this ratio evolves...
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SPX at 1189.38 as this post is written
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