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With even Bank Of America predicting the US economy will face a period of hyperinflation due to a major spike in commodity prices, the prospect of a stagflationary blow up just as seen in the 70s is worrying economists that sooner rather than later we will see the housing market boom turn into an epic bust. Building material prices have been skyrocketing and on the other hand, the US housing inventory is still at a record-low level. The market imbalances have never ceased to get worse, and bubble deniers are having a hard time explaining why the steep price increases are somehow justifiable. In a recent article, experts with ZeroHedge argued that the home price surge can be mainly attributed to the trillion-dollar government response to the current recession, in addition to record-low mortgage rates and a mass exodus away from major urban areas. Redfin recently divulged a market update revealing that, in May, median home sale prices rose to an all-time high of 18%, with 58% of all houses selling within two we
