Are We in the Middle of a Housing Bubble?

Despite the rise in home values to prices above those reached during the housing boom, Dina Elboghdady of the Washington Post claims there’s no cause for alarm.

“In March, Colorado, North Dakota, South Dakota, Texas, Wyoming and the District of Columbia exceeded their old highs, the mortgage firm CoreLogic reported Tuesday based on its own price index. Still, there’s no reason to fear a price bubble in those markets,  said Mark Fleming, the group’s chief economist.”

“Increased demand for homes leads to price growth, especially when the supply is tight. ‘You only need a little positive price appreciation and strong demographics going in your favor in those areas to surpass the prior peak,’ Fleming said.  ‘None of those were bubble markets.’”

Here’s a look at CoreLogic’s analysis of peak-to-trough declines nationwide:




FavoriteLoadingSave to Favorites
  • Yonatan YONATAN

    Those people who think that the unemployed are “lazy”, and prefer collecting unemployment benefits, have no clue of the reality facing these families. Most of these people had long term employment, and had families to support. The majority of them are “older” Americans, who had worked for many years, paying into the system, should they become unemployed, and needed financial assistance. These workers through no fault of their own, found themselves victims of corporate downsizing, and were laid off from their jobs. Given the current economic recession, they have had a particularly difficult time finding employment. Also, many companies are not motivated to hire “older” workers, due in part of the higher cost of health care insurance for older workers. Older workers, just on the basis of their age, would be placed in a “higher risk” group, which would affect the potential employer’s bottom line cost. As we all know, it’s all about profit and “the bottom line”. Since last December, more than 2.6 million workers have been without unemployment benefits. The republican senate has held the extension bill “HOSTAGE”, in the hopes of getting the XL Oil Pipeline passed by the president. This has NEVER been about these unfortunate families, but only about pleasing the lobbyist for whom they truly serve. While the republicans continue playing “party politics”, and using these families for political leverage, and as bargaining chips, these families have had to face evictions, home foreclosures, personal bankruptcy, and homelessness. Most of them have watched their credit being destroyed, because of lack of money to pay their bills on time, or at all. How many more families have to become homeless and destitute before the senate finally PASSES the extension bill? This truly is a national crime against the American family. While the politicians live their affluent and privileged lifestyles, with all the perks of office, these families continue to suffer and struggle to eat and to live

  • carlos

    Do you have no conscience at all, knowing that Freddie Mac and Fannie Mae are back in the game, and that in as little as five years the taxpayers will be financially sodomized once more? But then I’m sure that you don’t believe that Democrats could possibly be more allied with the Banksters than the Republicans….

Read previous post:
A Local Approach to Climate Change Mitigation

Major Garrett argues that the phrase "Think Globally, Act Locally," has "practical meaning," particularly when conducting a careful analysis of...