re: Homebuyers are now spending 40% of their gross income on mortgage and interest costs

quote:

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I have another doozy about the car market dying. A lot of the same indicators we saw in the run-up to 2007-08 are there

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It’s not 2007-08. In fact, it’s nothing like it and any parallels are coincidental or forced.

Look, I’ll give you the car market. It’s heading towards a collapse in propped by huge debt loads taken on by everyday consumers and a primitive automotive business that just isn’t economical to its stakeholders. The center of gravity is consumer debt. Fortunately (or unfortunately for doomers), unemployment rates are just far too low and the value of the dollar is higher than what it was pre-Covid.

I say that to say, I’m pretty sure you’ve been wish-casting a housing collapse since Covid but there are very little signs of that happening. Sure, you’ll see some slight declines in some markets but right now nothing significant is pointing to us seeing pre-Covid home prices (a collapse).