11:25 AM The 3 Stage Housing Bubble Collapse | |
| Most Americans don’t know, but the housing market is heading toward another epic bubble. However, the bubble forming today is much different than the subprime housing meltdown in 2007. Back in 2007, there was an oversupply of homes, whereas today there is a shortage. With more buyers than sellers bidding up prices, the U.S. median home price value hit a new record high of $338,000 at the end of 2017.
Unfortunately, wages have not kept up with rising home values. For example, the average hourly earnings have only increased 21% since 2009. However, the U.S. median home price $330,000 in Q1 2018 is 53% higher:
Now, to make up for the shortage of homes in the high-demand cities across the country, the new-home building boom is once again on the rise. The U.S. housing starts in March are up to 1.3 million from the low of 478,000 at the bottom of the 2009 recession. Now, even though current housing starts are more than double what they were at the lows in 2009, they are nearly 50% less than the peak of 2.3 million in 2006. Continue reading here: (source) | |
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