Patrick Kavanagh Scam - Has The Federal Reserve Changed Real Estate For Good?
Summary Home prices have seemingly detached from all historic indicators and correlations. Income growth is falling as home prices are rising. Supply of homes is historically low and the volume of home sales is plunging to 2006-2007 levels. In a world of global stimulus, does it matter? Will home prices eventually return to reality or has real estate been permanently inflated? This week has been filled with economic data pertaining to Real Estate. On Tuesday, FHFA House Price Index, Case-Shiller Home Price Index and New Home sales were released. My analysis showed a mixed bag and not much deviation from the trend I've tirelessly been pointing out of record low supply driving prices to artificially high levels . Prices are rising in an unsustainable fashion . I will run through all the data as I normally do but focus on the question as to whether the Federal Reserve and Central Banks alike have changed the dynamic of asset prices forever or if prices will correct and ...