Stocks vs Home Prices

S&P 500 index divided by the Case-Shiller National Home Price Index — the relative performance of financial assets vs real assets. Peaks in this ratio coincide with periods of financial asset overvaluation relative to the real economy (late 1990s, 2021–22); troughs signal real assets are cheap relative to stocks. A declining ratio as equities fall faster than home prices signals capital rotation toward hard assets and inflation hedges.

This indicator is computed by MacroLab from two FRED series: SP500 divided by CSUSHPINSA. Both input series are sourced from the Federal Reserve Economic Data (FRED) database.