The markets always win

Inventory of unsold homes is still a high 10 month supply. It will take some time before the inventory of unsold homes falls to a typical 4-5 month supply.

Meanwhile, home prices, down more than 16% from a year ago, will continue to decline (click on graphs to enlarge). It is going to be a long and painful ride created by a policy driven by the idea that everybody should own a home. Even if people could not afford it.

The magnitude of the destruction of wealth in the real estate sector is bound to have a deflationary effect in the near term.

The markets always win.

More, much more when you read older posts and subscribe to The Peter Dag Portfolio by going to https://www.peterdag.com/.

George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977