Return to 2003, Again, or Possibly 2002

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As promised, here is a followup chart to Friday's article on how long it's been since home prices were at current levels.

This chart once again uses the Case-Shiller index to track San Diego home prices but adjusts those prices for the effects of inflation as measured by the Consumer Price Index. By taking account of inflation, we can observe how expensive housing is (and was) not just in dollar terms, but compared to everything else.

The high end fared best once again, of course. Adjusted for inflation, the high tier of the March Case-Shiller index was back to levels last seen in August 2003. The middle and low tiers, in contrast, had fallen all the way back to valuations last seen in October and September of 2002, respectively.

As of March, the aggregate index of all single-family resale home prices was at an inflation-adjusted level last seen over five years ago in April 2003.

-- RICH TOSCANO