2020 came, and with it COVID-19. Five weeks into the crisis, demand for housing in the U.S. bottomed and then after about nine weeks, began to climb again, with purchase applications making a full V-shaped recovery by early June.
The housing bubble boys had those five glorious weeks when it finally looked like the market would succumb to their dire predictions of a housing crash. That is not much time to hawk a book, website, newsletter or what-have-you, but I guess one has to make hay where the sun don’t shine – or however that goes.
Now, in the first weeks of 2021, it’s like de ja vu all over again. Our friendly neighborhood bubble boys are hawking a 2021 housing crash, citing as evidence the moderation of some housing data metrics that inevitably follow parabolic increases. But they see these moderations back to trend as the harbingers of a housing crash that will send home prices back to 1996 levels in a short time.
Remember, all housing bubble boys have to believe that prices go back to the start of the original bubble, hence the marketing of housing bubble 2.0.
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