More Slow Home Price Growth Ahead

U.S. home prices are no longer showing signs of the sharp collapse once feared, and recent data point instead to a very slow upward drift.

Price gains are now running below general inflation, which is helping keep housing more affordable for future buyers.

The bigger forces appear to be slower money growth and a major shift in immigration policy, which has eased pressure on rental markets and reduced the urgency for many renters to buy.

For investors and advisors, that points to a housing market with less speculative risk than before, but also less support for rapid appreciation.