Given the US governments continuing catastrophic response to the coronavirus virus resulting in severe economic contraction then one would assume that the crowing from the rooftops perma bear deflationistas would finally be proven right with their decade long perma bear messages of a US housing market crash finally being fulfilled. So is that what happened? Were the perma bears finally proven right by chance, a black swan event courtesy of a leak from a wuhan bio lab?
We ll in economic terms the US as is the case for all western nations has come under severe economic pressures following the panic lockdown responses to an out of control pandemic with further economic pain expected during Q1 2021 in a race against time to deliver vaccines into american arms.
Real Estate Trend Forecast Review
Did the perma bears finally get their US house prices crash that they have been crowing so loudly for a decade now?
Firstly a recap of my existing US house prices trend forecast.
Therefore my forecast conclusion is for a relatively weak continuation of the US housing bull market into late 2020 at a much shallower pace than experienced in recent years for a
likely gain of just 3% over the next 2 years (Jan 2019 to Jan 2021) before entering into a downtrend going into 2021 i.e. Case Shiller 10 city Index (SPCS10RNSA ) rising from 225.9 (Jan 2019 data) to just 232.4 (Jan 2021 data) as illustrated by my trend forecast graph.