A Progression of Curves

Prompted by yesterday's release of the S&P - Case/Shiller home price index, here is a progression of curves. All have been indexed so that 1/1/1987 = 100.

First, the index itself.

Data: S&P

Now, let's see how home prices have fared versus inflation (CPI).

Data: S&P, St. Louis Fed

OK, that was pretty interesting. Now, how about adding per capita disposable personal income? This should give us an idea about housing affordability.

Data: S&P, St. Louis Fed

Hmm... we obviously got a ways to go before balance is restored. And with markets always prone to excess, it's quite possible that prices will undershoot.

OK, let's now add one more curve, the crucial catalyst that made this "reaction" go as fast as it did: per capita household debt.

Data: S&P, St. Louis Fed

Any questions?

Well, I have one: judging from the above, is the credit crisis over?