EVERYTHING IS GOING SWIMMINGLY: Latest Housing Data Are Clear: ‘Bidenomics’ Is Heading Toward a Crash.

From the fourth quarter of 2020 to the fourth quarter of 2022, the U.S. housing market experienced one of the most significant increases in housing prices in American history. Data provided by the Federal Reserve Bank of St. Louis show that over that two-year period, the average sales price of a home skyrocketed more than 36 percent, from $403,900 to a whopping $552,600.

For the first time in history, the 12-month increase in home prices topped 15 percent for seven quarters in a row, beginning in the second quarter of 2021.

Many current homeowners celebrated the unprecedented rise in housing values, but those rapid increases came with an important caveat: whenever housing prices increase as quickly as they have in recent years, an economic, stock market, and/or housing crash is almost certain to follow.

The evidence on this point is well established. In the 1970s, late 1980s, and in the early to mid-2000s, there were similarly large, sustained growths in housing prices. In every case, a large recession followed. And although the rule doesn’t always apply perfectly, it tends to be that the bigger the increase in housing prices is, the harder the economy falls.

Washington can paper over a weak economy with funny money — that shows up in places like inflated home prices that make existing owners feel good — but eventually the truth will out.