"This is basically a pyramid scheme"
Those are pretty harsh words about the state of the real estate market. If you read further down in the article, some experts try to argue that there is a shortage of land in the Las Vegas area. If there is one area of the country that does not have a shortage of land, its the greater Las Vegas area.
[Christopher Thornberg, senior economist with UCLA's Anderson Forecast, said the rapid housing appreciation happening nationwide is not supported by traditional economic fundamentals.
"Housing prices are growing at a rate of something like 10 percent a year (nationally)," he said, speaking at Colliers International's Summer Trends event.
Thornberg said that with low interest rates and record home construction numbers, there is little logical reason for prices to be climbing.
"There is just no justifiable reason for prices to go up, except pure speculation," he said. "This is basically a pyramid scheme. This can only work as long as people are coming in at the bottom end. Unfortunately, you are running out of them."]
Continue...
[Christopher Thornberg, senior economist with UCLA's Anderson Forecast, said the rapid housing appreciation happening nationwide is not supported by traditional economic fundamentals.
"Housing prices are growing at a rate of something like 10 percent a year (nationally)," he said, speaking at Colliers International's Summer Trends event.
Thornberg said that with low interest rates and record home construction numbers, there is little logical reason for prices to be climbing.
"There is just no justifiable reason for prices to go up, except pure speculation," he said. "This is basically a pyramid scheme. This can only work as long as people are coming in at the bottom end. Unfortunately, you are running out of them."]
Continue...
posted by Little_Silvered at 10:07 PM
1 Comments:
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