The American Dream of home ownership is once again on its death bed.
Home prices have dramatically increased in price, rising from their 2012 lows by a stunning 75%, with the average median home price now resting at $245,000!
This is up 4.5% over the last year alone, which means prices are increasing and increasing fast.
This has made home ownership essentially unaffordable for many millennial’s who are looking to purchase their first home. This is causing more and more to either return home and live with their parents, or asking them for assistance in purchasing their home.
Profits for many businesses are rising and consumer confidence is way up, recently hitting a thirteen year high,but this has not directly translated into an increases in wages, which continues to stagnate .
This truly is the worst of both worlds for many average working citizens, who are just trying to make ends meet and pay the bills. This is what many in the precious metals community have warned about for years, stagflation.
Sadly, many are completely ignorant to what is unfolding in front of their eyes, and they appear incapable of seeing just how similar this current environment is to that which led to one of the greatest meltdowns in modern history, the 2008 crisis.
Stocks have roared higher, causing valuations to become more and more disconnected from reality, home prices are becoming increasing more unaffordable and wages are stagnating in comparison to inflation. This has the hallmarks of a disaster in the making.
These problems on their own should cause one to take notice and pause in reflection, but this is not it, these are not the only problems that need to be taken into consideration.
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