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David's avatar

Great analysis. As long as we have a strong labor market, I don't think housing prices will go down that much. We have a structural supply shortage in housing in the US.

What might trigger the next leg down is a worsening of the labor market or higher interest rates if inflation creeps back up. If we're in the midst of a commodity supercycle as many are predicting, the current downtrend in inflation will not last. If/when oil goes back up to $100 a barrel, the fed will be forced to keep rates higher for longer.

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alexr_finanzas's avatar

Thanks for this article Mr. Bear! As an spanish, I'm looking at this in a very similar way in my country. Prices still high due to the high demand that cities have. Also, the gross of the properties are in boomers power, younger generations cant afford to live with more than 40% of their salaries into mortgage (very few takes this option) nor renting. So let's see once this get's more even unsustainable with the pensions ponzi fraud (you should do one article about this, would be funny :)

Regards TLBS!

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