In an article by Phil Hall for Benzinga, I laid out the case for slowing home price growth.
In a nutshell, the Case-Shiller National home price index YoY is growing at times the rate of growth of average hourly earnings. The last time this gap was this large, we saw a crash in home prices.
And with The Fed claiming that they will tighten their uber-loose monetary policy (next year), look for house price growth to subside somewhat.
Particularly if housing inventory returns to the market place. And The Fed slows its money printing.
Fast house price growth has caused consumer sentiment for buying a house to plunge.
How will Biden’s $3.5 TRILLION infrastructure bill impact housing? It depends on how much of legislation actually transmits to US households.
Here is Parks and Recreation’s Leslie Knope with now-President Joe Biden. Perhaps she help draft the monstrous $3.5 trillion legislation.