The recovery in the U.S. housing market is showing a pattern far different from what followed previous downturns, experts say, suggesting that the dramatic price gains of recent months may not be sustainable... market fundamentals may not be as healthy as the headlines suggest. - Money News (Thompson/Reuters) LINKInterestingly, right now I'm starting to see the same indicators that I observed all around Denver in 2007/2008 which told me the housing market was about to crash. "For sale" signs are starting to pop up a lot faster than "sold" signs (this is all over Denver, mind you); I'm starting to see "new price" signs placed on top of "for sale" signs (especially in high end areas - "new price"); "contract pending" signs are coming off of "for sale" signs and the home remains on the market, sometimes with a new broker listing; and rental rates are starting to fall, with move-in deals becoming standard once again. In addition, I'm seeing a deluge of homes for rent hit the market - a development which has occurred over the past three months.
The Federal Reserve and the Government, with well over $1 trillion of money thrown at the housing market - a lot of it taxpayer-backed money - have engineered what some call a "mini-bubble" and what I call a dead-cat bounce in the middle of a big bad bear market.
I have been collecting data, research and articles over the last three months, most of which never makes it into the mainstream media and thus goes unseen by the public . In Part 1 of my analysis I go over the dynamics of the housing market on a macro level, detailing the massive official intervention in the market, explaining why the low inventory reported by the National Association of Realtors is nonsense and some other macro indicators. You can read Part 1 here: The Coming Housing Crash. I'm working on Part 2 now.