I hate to keep pounding on the “strong” housing market theme, but when I see a blatant fraud being committed by the Federal Reserve, Wall Street, the Federal government, National Association of Realtors, and corporate MSM I feel obligated to shout from the rooftops. There is no doubt that home prices have surged by 12% in the past year on a national basis and over 20% in some markets. This is somehow seen as proof of a recovering economy and spun positively by the powers that be. It is nothing but another financially engineered scheme hatched by your owners.
The average American is tapped out. Over 50% of all home sales over the last three years have been either distressed sales or purchases by Wall Street shysters like Blackrock. This was all planned by Bernanke, Geithner, and their Wall Street owners. The idea was to artificially elevate home prices and save their insolvent balance sheets while convincing unsuspecting dupes and dumbasses to get back into the housing market. Home prices rise at about the rate of inflation over the long-term. The fact that they have risen at 6 times the rate of the official inflation rate should be setting off alarm bells among the critical thinking members of society.
Prices have risen at a faster pace in the last year than they did at the height of the biggest bubble in history. You would think even a CNBC bubble head would question how and why this has happened. But no. These talking heads just gush about how wonderful it is and make up some bullshit reason for the surge. They are paid to produce storylines for the sheep to believe. As usual, the surge in mortgage rates and the global liquidity freeze is going to reveal who was swimming naked. The housing market will crater again when the artificial liquidity dries up. It is happening at this very moment. Prepare to get ass fucked when we are told we must bailout the assholes again.
The US real estate market continues to surge. For some perspective, today’s top chart illustrates the US median price (adjusted for inflation) of a single-family home over the past 43 years while today’s bottom chart presents the annual percent change in home prices (also adjusted for inflation). Today’s chart illustrates that the inflation-adjusted median home price has rarely increased more than 7.5% in one year (gray shading). When inflation-adjusted home prices did increase more than 7.5% in one year, it was often soon followed by a period of stagnant or declining prices. The exception to this occurred during the credit bubble (2001 and 2002). It is worth noting that over the past 12 months, the median price for a single-family home has shot up at the fastest pace on record.