Ӣ This is worth repeating: the real price indexes are at post-bubble lows. Those who argued prices bottomed some time ago are already wrong in real terms, and will probably be wrong in nominal terms soon.
”¢ Don’t expect real prices to fall to ’98 levels. In many areas – if the population is increasing – house prices increase slightly faster than inflation over time, so there is an upward slope in real prices.
”¢ Real prices are still too high, but they are much closer to the eventual bottom than the top in 2005. This isn’t like in 2005 when prices were way out of the normal range.
Ӣ With high levels of inventory, prices will probably fall some more.
Read it all and check out the charts.
Bill McBride: The Housing market is Still Struggling
Ӣ This is worth repeating: the real price indexes are at post-bubble lows. Those who argued prices bottomed some time ago are already wrong in real terms, and will probably be wrong in nominal terms soon.
”¢ Don’t expect real prices to fall to ’98 levels. In many areas – if the population is increasing – house prices increase slightly faster than inflation over time, so there is an upward slope in real prices.
”¢ Real prices are still too high, but they are much closer to the eventual bottom than the top in 2005. This isn’t like in 2005 when prices were way out of the normal range.
Ӣ With high levels of inventory, prices will probably fall some more.
Read it all and check out the charts.