Is This A Housing Bubble?

                                                           

The establishment media is largely in denial that the United States is in a "housing bubble."      August 31, 2021   Today's Top Stories From the Breitbart News Desk The establishment media is largely in denial that the United States is in a "housing bubble." Although there have been lots of articles written about the idea that we might be in a housing bubble, almost all of the establishment financial press has come to the conclusion that while prices have been rising rapidly it is different this time. The argument goes that the earlier housing bubble was driven by speculation while prices now being driven higher by genuine demand for housing, by a shortage of houses, by a secular shift in desired housing, by future buying happening earlier due to the pandemic, by people seeking more space for remote work, and by the crime wave gripping our cities in the wake of last year's Black Lives Matter riots. There is undoubtedly some truth in each of those claims. We've pointed these out as factors driving home prices higher since the summer of 2020, when we coined the hashtag #flightfromthecities and started calling attention to the booming housing market. Back then, of course, much of the establishment media denied the housing boom and the shift away from central city apartments was really happening. It was just a few wealthy people moving into their country homes. Or pent-up demand from the initial phase of lockdowns, when many buyers stopped showing up and homeowners decided they'd rather not invite strangers into their houses while we were trying to "flatten the curve." Anything but a big shift out of the big cities. But it is worth remembering that back before the last housing bubble burst, bringing down the financial system and the global economy, there were lots of experts denying that was a bubble. They downplayed significant rises in home prices as evidence of a housing shortage. They denied banks would make irresponsible mortgage loans. Skyrocketing prices were merely borrowing gains from the future rather than forewarning of a coming crash. The news released this morning that the S&P CoreLogic Case-Shiller National Home Price Index rose 18.6 percent in January makes it a little harder to believe that it really will be different this time. Over the long-term, housing markets move roughly in step with the rest of the economy. There is simply no way on earth that gains we've seen in the past year are sustainable. Prices will eventually have to slowly deflate, perhaps simply by not rising for years as the rest of the economy catches up, or rapidly implode, as happened in 2008. So, yes, this is a housing bubble. But that does not answer the more important questions of how long it will last and how high home prices will go. The market can stay irrational longer than any of us can stay solvent, as they say. In many ways, the consensus to the contrary in the establishment media--that this is definitely not a housing bubble--is all the evidence you need. The establishment view is a trustworthy contrary indicator. When it says things have zigged, you can be damn sure they've zagged. – Alex Marlow & John Carney Breitbart News Network     TOP STORY   Post Hurricane Ida: 94% of Offshore Oil and Gas Infrastructure Suffered Damage The oil and gas industry infrastructure in the Gulf of Mexico suffered extensive damage from Hurricane Ida, which made landfall Sunday as a Category 4 storm. It could take weeks to assess the damage, with repairs delayed by the loss of power after "catastrophic" damage was done to Louisiana's power grid, utilities officials said. Reuters reported on the efforts to restart oil and gas production in the Gulf, which will translate into higher prices at the pump: [Click here for more]   IN OTHER STORIES... Bubble Trouble: Home Prices Rise at Fastest Annual Pace Since 1987 Home prices rose at an unprecedented pace in June, fueling fears that the U.S. housing market is experiencing another bubble. The S&P CoreLogic Case-Shiller national home price index was up 18.6 percent annually in June, up from the 16.8 percent... [Click here for more]   Zoom Shares Drop 16% as Growth Slows The video conferencing company Zoom, which enjoyed massive growth during the coronavirus pandemic, has suffered a 16 percent slide in share price today after the company reported second-quarter earnings that beat expectations but showed slow growth. CNBC reports that shares of the video-conferencing app company Zoom fell by 16 percent in intraday trading as the company published its fiscal... [Click here for more]   Consumer Confidence Tanks on Delta Variant and Bidenflation Consumer confidence plummeted to the lowest level since February, survey results released Tuesday showed. The Conference Board said its Consumer Confidence Index declined in August to 113.8, down from... [Click here for more] FOLLOW

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