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Strong supply weighing on house prices in the Sun Belt

Significant homebuilding in the Sun Belt region over the past three years has restored housing inventory to pre-pandemic levels, which is why house prices there have stalled. In contrast, markets in the Northeast and California, which haven’t seen the same level of new construction and where inventory remains historically low, are experiencing double-digit house price inflation. We expect the supply imbalances between these regions to correct over the next few years, reversing current trends.

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