randywhill posted: " The question about the housing bubble is very real to many people. Let's see what some experts have to say: The Joint Center for Housing Studies says conditions today are quite different than our last crash and prices are driven by strong demand, "
The question about the housing bubble is very real to many people. Let's see what some experts have to say:
The Joint Center for Housing Studies says conditions today are quite different than our last crash and prices are driven by strong demand, low inventory and low interest rates; not easy credit.
Nathaniel Karp, US Chief Economist at BBVA says the housing market is in line with fundamentals with attractive interest rates and high incomes. This makes debt servicing affordable and underwriting standards are strong, so there is little risk of a bubble.
Bill McBride of Calculated Risk says it is not clear that things are going to slow. The fundamentals are there; high demand from millenials and low inventory.
Mark Fleming, Chief Economist at First American says, in the past house prices exceeded house-buying power but today house-buying power is nearly twice as high as the median sale price nationally. In fact, housing is undervalued in most markets and there is room to grow.
Ultimately, all four believe there will not be a bubble and we won't see crashing prices. By the way, Goldmans Sachs, JP Morgan, Morgan Stanley and Merrill Lynch all share the same opinion.
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