Mark Hanson: Housing “Bubble 2.0″; Same as “Bubble 1.0″, only different actors

In this short note, I outline where my research is going at the first of the year supporting ideas about why a “strong economy” is negative for this housing market;  houses are far “more expensive” today then from 2003-2007 (i.e., “affordability” much worse); and how everybody has been “fooled by stimulus” and unprecedented monetary policy, yet again.

This report — which I am in the process of turning into a ppt presentation — establishes what US housing has really become over the past 12-years and in my opinion makes it far easier to time its unprecedented volatility and forecast the outcomes that since 2002 have fooled most of the people most of the time.

 This housing market is “resetting” right now;  for the third time in six years. It might look and feel a little different, but as I detail in this note, it’s not really different this time around.