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