BREAKING: Record-High Inflation-Adjusted Home Prices

- Current Situation: Inflation-adjusted home prices are now approximately 100% above the 130-year average, reaching near-record levels.

- Historical Context:

- Even at the peak before the 2008 Financial Crisis, prices were about 10% lower than current levels.

- Prior to 2000, home prices were closely aligned with inflation.

- Historical Peaks:

- Home prices were nearly 100% above the 130-year average in 2006 and are now at similar levels in 2024.

- Market Conditions:

- Despite a decline in rates, mortgage demand remains near 30-year lows.

- Home prices are at all-time highs while consumer spending continues to decrease.

- Consumer Sentiment: Consumers are holding off on purchases, anticipating potential rate cuts in the future.

Something needs to give—the housing market is at a critical juncture with soaring prices and subdued mortgage activity.