Relationship between Stock Market & Real Estate Market


CXO Financial Advisory Group did a comparative analysis of U.S. real estate and stock prices over a 50 year span starting in the 1960’s. It concluded that changes in home prices prior to 1990 did not generally correlate with contemporaneous changes in stock returns, but that changes since then suggest a negative correlation with a four-year lag -- i.e., that a rise (or fall) in stock prices correlates with a fall (or rise) in real estate prices four years later. It is important to recognize that stock market movement/volatility does not indicate falling home prices.

Gleeson, Patrick. “Relationship Between Stock Market & Real Estate Prices.” Pocket Sense, Accessed 21 December 2018.