U.S. Housing Bubble 2.0?
Has the housing market entered bubble territory? Looking at the market trends one has to ask. Housing prices have peaked past 2007/2008 elevations. There are a few things to consider.
Qualatative Easing has opened the floodgates of the credit market. We've seen loose monetary policy since "the great recession". Up to this point the Federal Reserve has kept interest rates at all time lows. Yellen recently raised rates and has threatened to raise them more. Rates go up, purchasing power drops, housing prices fall or completely collapse.
Wages have not significantly increased along with inflation. This trend has lent us another, but similar issue. Purchasing power. Home prices have continued to climb partially due to a decreasing supply of homes.
I would state we are either at a peak or damn close to it. Is there any indication the rally in housing prices could continue to rise?
If we stabalize our economy by reducing national debt and increase the number of full time employees, we could see this rally continue. Strategic economic regulation of imports and deregulation of domestic operations could lead to increased economic output. Such action could lead to global economic warfare, but with the U.S. at such import/export imbalance it may be an advantageous move.
What are your thoughts, are we entering a bubble or continuing this climb?
I love the Zillow report and other media accounts on how great real estate is doing in Scottsdale, AZ. It is a price dropping contest here in the $500,000 - $900,000 range. Good luck to the sellers and if you are buying.... take 10% off whatever offer you were about to make.
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STOPSF Bay Area is Baaaaad. My family has been there their whole lives. They're moving to Vegas. I'm pretty sure this bubble is gonna burst. Soon.
I look at it from a basic position. If housing becomes so expensive no one can buy it, it doesn't sell. SF is so expensive, I really don't see how it's managed even now.