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IPFS News Link • Housing

Housing Bubble 1.0 Vs. Housing Bubble 2.0--–The Culprit Is "Shadow Demand"…..Again

• davidstockmanscontracorner.com

For years, I have described US housing market conditions with some of the following color:

"this is not what a durable recovery with escape velocity is supposed to look like".

"a housing market recovery and house price recovery are two completely different things".

"something other than fundamental, end-user, shelter-buyer demand for houses is driven this sector".

"a bubble is a bubble is a bubble".

 and one of my favorites, "the great demandless house price recovery".

They all hold true.

After seven years of ZIRP and QE and three years after "nirvana" was first uttered, the CEO of a large builder was quoted last week as finally seeing "green shoots". I got an instant migraine when I heard that term…again.

If all we have are "green shoots" after this many years and trillions spent on a housing "market" recovery, we are in a lot more trouble than I have been forecasting.


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