US House Price Growth = 4x Average Hourly Earnings (Price Growth Will Be Forced To Slow Down)

by confoundedinterest17

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.

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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.




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