Just like The Office’s Dunder-Mifflin, the US housing market is like the ad campaign “Limitless paper in a paperless world.” Except that is “Limitless home prices in a supply-constrained world.”
Available inventory of homes for sale is helping to drive home prices through the roof. As in 38% higher than a the peak of the US home price bubble.
Of course, massive M2 Money growth is helping to drive home prices through the roof.
M2 is a calculation of the money supply that includes all elements of M1 as well as “near money.” M1 includes cash and checking deposits, while near money refers to savings deposits, money market securities, mutual funds, and other time deposits. These assets are less liquid than M1 and not as suitable as exchange mediums, but they can be quickly converted into cash or checking deposits.