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New US Home Sales Surge. Average Prices Jump Back Near Record
New home sales in the US soared almost 10% last month, as lower mortgage rates and builder incentive
So what are the inflation adjusted home prices now? If inflation was 6 % in the last 12 months it means real home prices are down about 16% year over year. Its not so surprising nominal prices would stabilize or bounce, especially when mortgage rates dropped recently. My bet is nominal prices won’t change that much over the next 5 years, translating to an inflation adjusted decline.