The article compares the volatility of California home values to the ups and downs of the S&P 500 index from 1975. The S&P 500 saw a remarkable 54% gain in 2021 but also faced a 40% drop during the Great Recession, showing an extensive range of volatility. In contrast, California's FHFA index recorded a maximum gain of 29% and a 23% drop, reflecting a smaller spread of volatility and smoother trends. This stability offers some comfort to homeowners compared to the sharper variances in stock markets.
"Over the past 50 years, California home prices have shown erratic fluctuations, but they are much smoother compared to the wildups and downs of the stock market."
"The S&P 500 has seen extreme extremes, with a 54% gain in 2021 contrasted sharply by a 40% drop in 2009 during the Great Recession."
Collection
[
|
...
]