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The Housing Market Is Still In A Depression

Following the bubble, the housing market’s pain has been deep and persistent.

This isn’t merely a cyclical downturn. Even six years after the market peaked, the healing process has not yet begun. The industry isn’t in recession: it’s in a depression.

On Monday, billionaire investor Warren Buffett made this assertion. He’s right, but not for the reason he states. Here’s the Associated Press quoting what Buffett said to CNBC, via Bloomberg:

Buffett told CNBC on Monday that housing construction is “in a depression, not a recession” because there is still an oversupply of homes.

By digging into the data, the depth of the industry’s problems becomes clearer, but it appears to have little to do with the current supply of homes.

http://www.theatlant…ression/248533/

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