1233 days ago • Posted by Charles-Henry Monchau
U.S Housing Bubble 2.0
As highlighted by Wolfstreet.com, despite a struggling economy, there is massive house price inflation in the U.S. House prices jumped 7.0% in September, according to the Case-Shiller Home Price Index released last week. The rise is fueled by low interest rates, $3 trillion in liquidity that the Fed threw at the markets, fear of inflation that drives people into hard assets, work-from-home that causes people to look for a larger place and a shift from rental apartments and condos in high-rise buildings to single-family houses. For instance, house prices in the Los Angeles metro are now 12.9% above the peak of the totally crazy Housing Bubble 1, have nearly doubled (+93%) since early 2012, and having more than tripled since January 2000 (+209%).
