We are happy to cover all sides of the bubble beat.  This is the second release this month from our perma-bear, Mark Hanson.  He has been saying the same thing for 3-4 years, and it’s all based on theory and previous history.  Around here, our market is almost completely driven by owner-occupiers who are buying homes for the long-term:


An excerpt:

If 2006 was a known bubble with housing prices at “X”, affordability never better, easy availability of credit, unemployment in the 4%’s, total workforce at record highs, and growing wages, then what do you call today with house prices at X+ 5% to 20%, worse affordability and credit, higher unemployment, weakening total workforce, and shrinking wages? Whatever you call it, it’s a greater thing than “X”.

6-14 Hanson…Bubble 1.0 vs Bubble 2.0; “Green Shoots” and “Shadow Demand”

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