Waiting for Home Prices to Fall? Don't Hold Your Breath
Nominal price drops are rare and short-lived
We often talk about changes in home prices without adjusting for inflation (“nominal” changes in prices). But measuring changes in “real” terms—stripping out the impact of inflation—makes more sense.
Most national indices show that home prices are higher than they were a year ago—but only without adjusting for inflation. In real terms, prices are lower.
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