"Pricking the Bubble"
Snip...
"These two factors—low mortgage rates, and the fact that the country has filled up so much that our cars no longer marginalize location costs—go a long way toward explaining the surge in housing prices over the past decade or so. But they don’t go all the way.
On top of these two powerful fundamental factors sits a bubble. The bubble is filled by people with money who are buying extra houses because they think home prices will continue to rise, and by people without money who are buying $400,000 houses in less-fashionable neighborhoods with zero percent down and floating interest rates."
Continue...
"These two factors—low mortgage rates, and the fact that the country has filled up so much that our cars no longer marginalize location costs—go a long way toward explaining the surge in housing prices over the past decade or so. But they don’t go all the way.
On top of these two powerful fundamental factors sits a bubble. The bubble is filled by people with money who are buying extra houses because they think home prices will continue to rise, and by people without money who are buying $400,000 houses in less-fashionable neighborhoods with zero percent down and floating interest rates."
Continue...
posted by Little_Silvered at 9:48 AM
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