When the prior bubble burst (2006-2008) many markets lost 35% of their house values at the bottom(2012), some lost 50%, and many did not recover for over 10 years when you measure with inflation adjusted dollars : RealEstate

I was looking for a chart of housing prices over the last 20 years, where the prices were measured with inflation adjusted dollars, and found this interesting article that shows the Case Shiller index from 1975 to 2017 (too bad it doesn’t go to 2020).

Was very interested to see that using nominal dollars (not inflation adjusted) the Case Shiller index peaked in 2006 and didn’t reach that peak value again until 2017 (an 11 year span). To me this is very enlightening as you often hear enthusiastic agents say that the effect of that bubble burst only lasted a few years (2008-2012).

Also, if you adjust the Case Shiller index for inflation, the market had not recovered yet by 2017 from the peak in 2006.

Here is the main chart with the inflation adjusted line added by the authors.

https://inflationdata.com/articles/wp-content/uploads/2013/06/Inflation-Adj-Housing-Prices.jpg

And here is the entire article from which the chart is extracted.

https://inflationdata.com/articles/inflation-adjusted-prices/inflation-adjusted-housing-prices/