{"id":1411893,"date":"2022-03-31T05:14:39","date_gmt":"2022-03-31T09:14:39","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1411893"},"modified":"2022-03-31T05:14:56","modified_gmt":"2022-03-31T09:14:56","slug":"unhinged-and-abnormal-fed-warns-of-housing-bubble-as-average-cost-of-new-homes-hits-record-high","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/unhinged-and-abnormal-fed-warns-of-housing-bubble-as-average-cost-of-new-homes-hits-record-high\/","title":{"rendered":"\u2018Unhinged\u2019 And \u2018Abnormal\u2019: Fed Warns Of Housing Bubble As Average Cost Of New Homes Hits Record High"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">34<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Funhinged-and-abnormal-fed-warns-of-housing-bubble-as-average-cost-of-new-homes-hits-record-high%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1411893&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/dw-wp-production.imgix.net\/2022\/03\/Home-For-Sale-scaled-e1648684351236.jpg?w=1200&#038;h=800&#038;ixlib=react-9.3.0\" class=\"ff-og-image-inserted\" alt=\"image\" \/><\/div>\n<p><span>New data from the Census Department released last week reveal that the average cost of a new home hit a record high in February at $511,000. Now, the Federal Reserve is warning about a housing bubble.<\/span><\/p>\n<p><span>The Daily Wire\u2019s Cabot Phillips joined Thursday\u2019s episode of \u201c<\/span><a href=\"https:\/\/www.dailywire.com\/podcasts\/morning-wire\"><span>Morning Wire<\/span><\/a><span>\u201d to explain more about the skyrocketing housing market.<\/span><\/p>\n<p><span>Housing prices have spiked 25% over the past year, and since 2012, the cost of a new house has doubled, Phillips explained. \u201c<\/span><span>Cities with the biggest spikes were Phoenix, Miami, and Tampa, but overall, it was houses in southeastern states that saw the largest spike in 2021,\u201d said Phillips to \u201cMorning Wire\u201d hosts Georgia Howe and John Bickley. \u201cBut again, it\u2019s really everywhere across the country.\u201d<\/span><\/p>\n<p><span>Phillips was asked exactly why housing costs are spiking so much. He pinned the reasons on inflation, which is currently at an 8% year-to-year rate, rising costs for lumber and fuel, and the COVID-19 pandemic. \u201cDuring the pandemic, new construction projects were halted across the board, and that means the number of houses now up for sale is far lower than usual. It\u2019s simple supply and demand,\u201d he said. \u201cAnd unfortunately on that front, it will likely take years for new home construction to once again meet demand.\u201d<\/span><\/p>\n<p><span>Another reason for the high demand, and consequently high prices, of new houses is the shift to remote work during the pandemic. As people were allowed to work their high-paying jobs from home for companies in big cities like Los Angeles and New York, they were able to leave those cities and live in smaller, cheaper neighborhoods. This set off bidding wars, Phillips explained.<\/span><\/p>\n<p><span>The continued rising costs in the housing market have caused the Federal Reserve to <\/span><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-03-29\/dallas-fed-sees-signs-a-housing-bubble-is-brewing-in-the-u-s\"><span>warn<\/span><\/a><span> of a housing bubble, something not seen since just before the market crash of 2008. Phillips said this means the Federal Reserve sees people overpaying for houses causing a \u201cmarket exuberance.\u201d The Federal Reserve called the exuberance \u201c<\/span><span>unhinged from fundamentals\u201d and \u201cabnormal \u2026 for the first time since the boom of the early 2000s.\u201d<\/span><\/p>\n<p><span>There is some hope for the housing market to calm down. \u201cSome Real Estate experts say that increasing mortgage rates should cool the market a bit,\u201d Phillips commented. \u201cRemember, mortgage rates were down around 2 percent during the pandemic, so a lot of people were simply able to afford houses that a few years earlier when rates were higher, would\u2019ve been out of their price range.\u201d<\/span><\/p>\n<p><span>Other experts aren\u2019t as optimistic for the near future, however. They believe that \u201cuntil the supply of houses meets the overwhelming demand that we\u2019re seeing right now, prices will continue to rise,\u201d Phillips said.<\/span><\/p>\n<p>Thursday\u2019s episode of \u201cMorning Wire,\u201d and all episodes of the podcast, can be found\u00a0<a href=\"https:\/\/www.dailywire.com\/podcasts\/morning-wire\">here<\/a>.<\/p>\n<p><em>The Daily Wire is one of America\u2019s fastest growing conservative media companies for breaking news, investigative reporting, sports, podcasts, in-depth analysis, books, and entertainment for a reason: because we believe in what we do. We believe in our country, in the value of truth and the freedom to speak it, and in the right to challenge tyranny wherever we see it. Believe the same? <a class=\"in-cell-link\" href=\"https:\/\/www.dailywire.com\/subscribe\" target=\"_blank\" rel=\"noopener\">Become a member now and join our mission<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New data from the Census Department released last week reveal that the average cost of a new home hit a record high in February at $511,000. Now, the Federal Reserve<\/p>\n","protected":false},"author":324,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1411893","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1411893","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/324"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1411893"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1411893\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1411893"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1411893"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1411893"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}