The chart below shows how real (inflation-adjusted) housing prices compare to their peak levels on a percentage basis over time. The horizontal axis shows the number of years from when the peak prices occurred. So what it does is allow us to compare housing price slumps from different time frames in terms of severity of the price decline and the length of the slump in prices. As you can tell, the current situation looks pretty bad. It’s startling to me how much worse the current slump is compared to the Great Depression.

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