by Ryan McMaken
Mises.org
Real wages are falling, inflation is at a 40-year high, and the Atlanta Fed predicts we’ll find GDP growth at zero for the second quarter. Meanwhile, both the yield curve and money-supply growth point to recession.
But when it comes to the latest data on home prices, there’s still no sign of any deflation or even moderation. For example, the latest Case-Shiller home price data shows home prices surged above 20 percent year-over-year in April, marking yet another month of historic highs in home price growth. It’s now abundantly clear that a decade of easy money, followed by two-years of covid-induced helicopter money, has pushed home price growth to levels that dwarf even the pre-2008 housing bubble. This continues to make housing less affordable for potential first-time home buyers and for renters. Unfortunately, the options for “doing something” are limited, and probably require a recession.