Your Name:
Your Email Address:
To: (Email)
Subject:
Message:
Email Preview:

Your name saw this post on The ActiveRain Real Estate Network and thought it might be of interest to you. Please see the link below to review the post.

Is This a Housing Bubble? Don't Wait for It to Pop - Here is Why
     We are always worried about bubbles and rightfully so.  When markets get out of control, it can really be devastating.  Lise Howe has summarized why our current market is very different than the market just before the Great Recession.  There is limited supply, high demand from well qualified buyers, interest rates are historically low and current homeowners have a lot of equity.  It is remarkable, but over 55% of homeowners have at least 50% equity in their home.
It is Always Something
     Are there potential problems ahead?  There always is something.  What if interest rates do go up?  We have watched as rates have gone steadily down since 1980.  It has been a very long move down.  What happens if there is a meaningful rise in rates?  I have worried about rates rising for years and have been very wrong.  Still, if rates rise there will be repercussions.  It could affect housing prices, but is there a bubble?  For the reasons that Lise Howe has articulated, I do not think so.  I think the real worry is in the bond market.  Small changes up in interest rates can create real downward movements in bond prices.  If there are any ... more

__________________________________________________
Are you on The Rain? Grow Your Network!




Spam prevention