I recently gave a talk on housing markets, beginning with some observations and asking a few pressing questions.
U.S. house prices are increasing at about a 20 percentage point annual rate in recent months, the highest rate of growth ever recorded.
The level of real (inflation-adjusted) house prices is the highest in 131 years of house price data stretching back to 1890.
What does this mean for the housing market?
Is the growth rate of house prices sustainable?
Is the level of house prices sustainable?
Will there be a house price correction?
If there is a correction, what would be the trigger?
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