Chart: Will home prices drop even further in Rhode Island?May 31st, 2012 at 11:39 am by Ted Nesi under Nesi's Notes, On the Main Site
As I reported this morning, one in three homeowners in Rhode Island’s two largest counties are still underwater on their mortgages. It’s also interesting to note that housing prices have soared more quickly here than nationwide.
Take a look at this chart from the St. Louis Fed’s invaluable FRED database, which compares the growth in house prices since 1975 for both the U.S. (red) and Rhode Island (blue) :
Looks like a bubble! But is it?
Here’s the same chart with the addition of the home price index for Massachusetts (green):