House Prices: 7 Years in Purgatory

10%+ Nominal Price Declines Now Seem Likely

Earlier this year, I argued the most likely path for house prices was for nominal prices to “stall”, and for real prices (inflation adjusted) to decline over several years. The arguments for a stall included historically low inventory levels, mostly solid lending over the last decade, and that house prices tend to be sticky downwards.

As I noted, homeo…