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Thursday, December 23, 2010

U.S. Real Home Prices Reverting To The Long Term Mean?

Chart 1: U.S. Real Home Prices Returning to Long-Term Mean?
Speaking of stating the obvious, the "analysis" sounds like a joke. Home prices have been around 170,000, so 5 percent is $8,500. Coincidentally enough, the 2009 federal tax credit was $8,000. Imagine that. Anyhow, consider yourself warned, as housing prices should be heading down next year and
the decline probably won't be as modest as the Fed would prefer.
Brock Townsend at Thursday, December 23, 2010

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