This is a good article. The author overlooks something, though. The post-2008 bank bailout and the low mortgage interest rates aren’t aimed at subsidizing the housing market. They’re aimed at propping up the value of existing mortgages on those homes just so the securitized mortgage bonds created with them will hold their value. They can still prop up those mortgages even if home sales fall to zero.
Housing recovery? Perhaps in the suburbs of a few large cities. But not in the rest of the country. I live in a city of 250,000 people. And I just sold my house. But, I put it up for sale 46 months ago, and I took a huge loss when I finally got an offer. Cute house, on a golf course, very desirable area, and the house was well staged by three different realtors. But, I despaired in 2012 when Obama won re-election, because I knew that the economy would stagnate and that my house would not sell. Well, after 46 months it finally did by the grace of God, but with no thanks to Obama. And I took a huge hit. Housing recovery? You’ve got to be kidding!
There was another Freeper, can’t remember who, mentioned a family member worked in the housing industry and said that another bubble is coming, probably in about 2 years.