For all who claim that rampant inflation is up next, and home price deflation is over, I present the following charts for readers to ruminate on just how much higher existing home sales inventories are relative to some semblance of a trendline, in addition to a long-term chart comparing CPI with the median home price. Not only is there massive oversupply still, but the leverage induced price boom over the past 30 years still has a ways to go before it catches up with CPI, absent the impact of cheap credit (which is why Geithner will soon be personally handing out limitless Diner's Clubs, backed by the full faith of the worthless dollar).
P.S. the phrase "rock-bottom housing prices" was uttered 5 times on CNBC in the past 3 hours. Curious what the hourly quota is.
hat tip Lev
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