Seattle Bubble Forum Archive

I wonder if it is possible to equate home prices to the Dow Jones Industrial average. It would be interesting to plot the two against one another.

If rises in the Dow correlate to rises in US home prices, then one would think that declines in the Dow could correlate to housing busts. How much would home prices be impacted if the Dow were to fall to 10,000? What aboutt 8,000?

I can't imagine that we could see the Down fall below 10,000 without a further weakening of real-estate. Stocks do poorly when the economy is struggling, and it would be hard to see how housing could appreciate if the economy was under stress.

Just thinking of the last decade, there is no correlation.

Prior to the speculative stock and housing bubbles, it's entirely possible.

here's a comparison done by forbes for the S&P (which is a far better inidicator of market performance than the dow)

housing markets are far less volatile than stocks, so it's really not such an interesting chart IMHO