A few month’s ago my boss, Sean O’Toole, the Founder of ForeclosureRadar, came to me and asked me if I thought there was a housing bubble. I should have known it was a trick question!
After he let me answer he quickly showed me a chart and explained that it was NOT a housing bubble but it was in fact a credit bubble and he went on to explain that he had researched the history of home values and every spike in value could be attributed to government loan programs or lax lending standards. http://www.foreclosuretruth.com/blog/sean/want-to-know-when-prices-will-rise/
Based on this historical perspective it was no surprise to me to read Sean’s 2011 Housing Market Predictions where he states “The government’s role in housing is so huge that decisions made in Washington, and our state capitals, over the next twelve months will have more impact on home sales and prices than any other factor.” http://www.foreclosuretruth.com/blog/sean/the-only-surefire-2011-housing-market-prediction/
Just in case you think I am a card-carrying member of Sean’s fan club because he is my boss, think again. Any real estate investor that liquidated their real estate investments in 2006 at the peak of the market should certainly have an audience when he gives his predictions.