The U.S. national housing bubble has COMPLETELY DEFLATED

When I updated my inflation-adjusted real estate charts early this morning I was shocked at what I saw. The U.S. national housing bubble is finally gone.


That said, there are still many local bubbles, especially in the Northeast (D.C. and up) and the West Coast. In contrast, other regional markets such as many of those in the Rust Belt and the Sun Belt are now either fairly valued or undervalued.

I have argued in the past that real estate prices don't overshoot to the downside. The next few quarters will reveal whether I was right or wrong about that.