Sunday, March 26, 2017
maybe not a bubble
Towers of ilium does not subscribe to chartism, but a few tentative observations can be made about the rebound in U.S. home prices.
1. Home prices that outpace inflation and wages may be inevitable for the next decade
2. Price increases are driven by urban areas
3. The bubble of the 2000s popped, but this one may not--see comments 1 and 2
Housing price bubbles have not led to recessions (yet) in China, Canada, or Australia.
However, the next global recession will result in a significant decline in home prices.