At the suggestion of Keith Weiner and reader Sundar, here are two charts on home prices, one in terms of gold, one by a CPI deflator.
Both charts are from Chart of the Day. I published the deflator chart recently. The Inflation-Adjusted chart gets you back to 1978 prices and the gold ratio chart gets you to the early 1980s. Please see my article “Case-Shiller Down 5.1% Q1 2011 From Q1 2010” which has a discussion on affordability.