Note how the show repeats itself every time.
Bank of Canada: it’s so vast and weighed down with so much debt that a “sharp correction in house prices” could take down the financial system.
This chart shows how truly screwed up this housing market really is.
What’s left is a toxic mix: dropping sales, still rising prices, ballooning inventories.
America might start a downturn from a position of weakness unique since WW2.
This is what’s not happening in the housing market: young people buying homes — even though there are falling mortgage costs and rising rents.
The American Dream? Not for millennials.
Rents and housing costs make up 30% of the Consumer Price Index. They’re its largest component. They’re soaring in real life. But not in the CPI.
Sweet Spot: Homes above $15 million.
Something has to give. And it’s not going to be the maxed-out American middle class.