The recent high and low -wild stocks of stock prices can offer some comfort to those who prefer a little more serene history of the value of the houses of California.
To see how the intrigue at Wall Street is compared to the banish in real estate, my faithful calculation sheet examined the stories of the actions (the standard index and the 500 poor) and the prices of the houses of California (the index of the Federal Housing Finance of the Agency) through a somewhat mastered lens.
Since 1975, the biggest year -year -old gain in the S&P 500 has been the leap of 54% in the 12 months finished in March 2021, the heart of the economic rebound of the first fears of the pandemic.
Lowering, the worst months of the S&P 500 were the collapse of 40% ending in March 2009, the heart of the global financial rout of the great recession.
It is a spread of 94 points between the best and the worst of Wall Street.
Then think about the main street of California – its sometimes erratic prices of houses.
In the same half-century, the largest 12-month lead in the State FHFA index was an increase of 29% until September 2004.
These days have ended badly, housing prices in California plunging 23% until September 2008, while the real estate bubble burst into the great recession.
This 52 -point difference is the 10th largest among states, but it is also smaller at 45% than the spread of the S&P 500.
This simple mathematics aligns with the volatility of the prices measured by the geek statistical called standard deviation. According to this calculation, the twists and turns of the California house index are the most coming from a national dashboard.
But these rebounds are 40% smoother than the Girations of the S&P 500.
I would like to emphasize, however, that shareholders are rewarded for having lived through the ups and downs.
Take the house in California from 1975, which cost $ 42,000. Imagine if it was appreciated during the average gains of 7% of the FHFA housing index during the last half century. Gains would increase the median from 1975 to $ 1.1 million today.
Conversely, using the annual gain of 10.2% of the S&P 500, this same house in 1975 was worth $ 4.8 million.
Jonathan Lansner is company columnist for Southern California News Group. It can be attached to jlansner@scng.com
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