This looks like housing bubble 2.0. Looks like houses are about 20-30% overpriced vs. a 3% inflation trend line. Not good when wage inflation is only 2%.
just curious as to what you base your bubble prediction other than this price chart. I agree with you on bubble as well but wanted to get your take on it.
Housing costs should be rising along with inflation. Maybe faster for short periods of time if they get overly beat down. But if 2008 was a bubble and homes were far too expensive for most, and now we have made a significant divergence from wage/overall inflation again, it is another bubble.
just curious as to what you base your bubble prediction other than this price chart. I agree with you on bubble as well but wanted to get your take on it.
ReplyDeleteHousing costs should be rising along with inflation. Maybe faster for short periods of time if they get overly beat down. But if 2008 was a bubble and homes were far too expensive for most, and now we have made a significant divergence from wage/overall inflation again, it is another bubble.
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