U.S. house prices will likely never recover. But that’s no reason not to buy. That’s because the natural rate of price appreciation for houses is zero after inflation. Prices will eventually stop falling and will resume rising. But over the long term, they’re unlikely to resume rising faster than inflation. That’s why prospective buyers should stop focusing on the vague hope that house prices will jump from here and focus instead on the functional value houses provide for the money.
Why Home Prices Won’t Recover . . .But You Should Still Buy
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