The housing market compared to the inflation rate of the dollar

[Jordan Archer]

Take a look at the graph "National Housing Price Index and Inflation Rate." The blue trend on the graph represents the National Housing Market Price Index, normalized to 100 at the base year 1975. The red trend represents the inflation of the dollar with base value $100.  You'll see how the housing market has historically followed the inflation rate of the dollar. 

I think this is interesting because  when ever the market reaches a low point, home values always comes back to the inflation trend. This means you can use the inflation trend to predict where the market will bottom out next, and anticipate when the best time to buy will be. 

This trend is also interesting because it shows how high the market currently is. It also shows how unstable the market has been recently compared to previous decades. 

(Note: I got the NHPI information from https://www.fhfa.gov )