The Gap Gauge is a new presentation of housing trends by MacroMarkets.
MacroMarkets was founded by housing economist Robert Shiller (of the Case-Shiller Index.)
Altos Research data allows you to see market trends beyond just prices.
It allows you to discover the difference between the current level of a home price index and its baseline trend level.
The baseline trend is derived by extrapolating the average rate of index growth before 2000, the year when prices in many real estate markets began appreciating at unprecedented and unsustainable levels.
Gap measures the percentage difference between a current index level and its corresponding baseline level.
Interestingly Chicago area prices have fallen below their natural trendline - suggesting that now is a good time to buy....
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