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The Masked Tulip

Housing Bubble's Burst Could Cost 1 Million Jobs And Cause A Recession, Experts Say

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"The collapse of the housing bubble will throw the economy into a recession, and quite likely a severe recession," warned a July report by the Center for Economic and Policy Research.
"The demographic story behind the housing market boom, as we always thought, was a giant hoax," wrote Merrill Lynch & Co.'s North American Economist, David Rosenberg, in a recent report.
"There has been no significant increase in rents, which would be expected if the run-up in house prices were explained by the fundamentals of the housing market," Baker wrote.

Then, there's the problem of affordability. Affordability for first-time home buyers is the worst it has been in 20 years, which brings to mind an old parable about the stock market. A woman buys up a company's stock, driving up the price as she goes. Eventually, she tells her broker to sell.

His response: "To whom?"

"House prices are at the mountain top," Zandi said. "All roads lead down. It's just a question of how steeply."



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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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