July 27, 2022

Housing Bubble Bursting

Timothy Birdnow

And so it begins. The bottom is dropping out of the housing market.

Amid plunging demand, the median sales price of new homes fell to $402,400 last month from $449,000 in May.

America has been in a classic bubble in terms of real estate. It has been artificially inflated by artificially low interest rates and easy credity (promoted by government - again.) During the pandemic it got even worse since a lot of people had to stay home and grew bored - so bought new homes assuming they could afford more house. Now those chickens are coming home to roost.

Posted by: Timothy Birdnow at 11:23 AM | Comments (2) | Add Comment
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