The housing bubble has surpassed the roaring tech bubble:
In the third quarter of 2005, Americans spent 6.1% of GDP on building new homes or renovating existing ones. That’s a bigger share of the economic pie than tech got at the height of the boom.
To me, this has become a no-brainer. These levels of residential spending are not sustainable, guaranteeing a housing downturn in 2006 (incidentally, as far as I can remember, this is the first time I’ve made this forecast). And the downturn will likely be sharper than most people expect, including a drop in median home prices nationwide.
Even more evidence of a housing bubble, yet the experts continue to deny.