Nick Gerli, CEO of Reventure Consulting, has indeed raised alarms about the current U.S. housing market, describing it as the “biggest housing bubble of all time”. According to Gerli’s analysis, inflation-adjusted home prices have soared to nearly double their 130-year average. This situation is even more extreme than the housing bubble of 2006.
Gerli’s assessment is based on historical data showing that from 1890 to 1990, inflation-adjusted home prices never exceeded 20% above the long-term norm. The current market conditions, driven by factors such as Federal Reserve policies and quantitative easing, have led to unprecedented price levels.
Sources:
finance.yahoo.com/news/housing-market-biggest-bubble-time-113351397.html
finance.yahoo.com/news/mortgage-rates-drop-homebuyers-still-113019488.html
Existing Home Sales dropped 2.5% MoM (-1.3% exp), and down 4.22% YoY. 👇🏼 pic.twitter.com/Sn55Gt2Rbq
— Kalani o Māui (@MauiBoyMacro) September 19, 2024
🚨THIS IS THE BIGGEST US HOUSING BUBBLE OF ALL TIME🚨
This is according to Reventure analysis of 134 years of data.
Inflation-adjusted prices are nearly 100% higher than the 130-year average.
Prices are now even higher than in the 2006 housing Bubble.👇t.co/yrWv4fy57V
— Global Markets Investor (@GlobalMktObserv) September 20, 2024
From peak to trough, home prices feel for 2 years from 2007 to 2009.
The ONLY reason the price collapse was halted was the lowest mortgage rates in US history.
1.34% BELOW the lowest historical rate. pic.twitter.com/dtVPH8jHGQ
— Darth Powell (@VladTheInflator) September 20, 2024