The housing bubble and financial crisis of 2008/2009 crushed the life out of markets.
Consider existing home sales that rose from 1998 to 2007. During this time frame, the inventory for sale of Existing Home Sales (yellow line) rose as well … as The Fed tried to douse the asset bubble fire by raising their target rate (green line). Then … WHAM! Inventory of homes for sale started falling as The Fed lowered rates and went on an MBS/T-bond buying binge (orange line).
But The Fed didn’t help increase homes available for sale, only the median price of Existing Home Sales. JAWS!!!!
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