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Gordon Johnson, CEO / Analyst at GLJ Research, asserts that U.S. home prices have increased more than threefold since 2000. Johnson contends this rise is not a result of lumber prices or zoning regulations but attributes it mainly to the U.S. Federal Reserve keeping borrowing costs low for the majority of 15 years, making leveraged assets like real estate significantly more expensive.
Johnson has previously said that stock market gains have captured investor attention despite ongoing inflation and consumer spending concerns, citing the influence of the U.S. Federal Reserve’s policies in a recent commentary. He also questioned the likelihood of further rate increases by the Fed in a separate analysis. Johnson’s recent comments on U.S. home prices follow a continued focus on central bank actions.