The US Housing Market Is In A Price Bubble (Again)

#bubble, #inflation, CMBS, CRE, Credit, Economy, Existing Home Sales, fannie mae, Fed, Freddie Mac, GDP, Gold, Housing, Inflation, Mortgage, New Home Sales, Powell, REITs, Silver, Treasuries, Treasury, Uncategorized, Wages, Yellen, Yield Curve 1 Minute

Yes, the US housing market is in a price bubble. If we compared home price growth with median earnings.

The financial crisis was spawned by a home price bubble where home price growth was faster than median earnings growth (see Bubble 1). After home price growth cooled in 2007-2009, the cycle started again (Bubble 2). But the current bubble (Bubble 3) is related to the Covid outbreak and massive spending binge by Congress (and The Fed). Notice that median earnings dropped (green line) post Covid.

But while we have normalized home price growth and median earnings, the LEVELS are still unaffordable for millions of households.

Poor Bill Pulte (FHFA Director). He has to work with an uncooperative Fed under Foul Powell, and local politivcians like Greasy Gavin Newsom (Democrat Gov of California), JB Pritzker (Democrat Gov on Illinois), Kathy Hocul (Democrat Gov of New York), and the assorted lunatic Mayors like Karen Bass (D, Mayor Los Angeles), Zohran Kwame Mamdani (D, presumptive Mayor New York City), etc.

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Published by confoundedinterest17

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