Housing Market Already Shows Signs of a New Bubble

tarandfeathers | Feb 5, 2013 10:56 AM ET Thank you Federal Reserve for making all of this possible with your ultra low interest rates forever! When you are tired of draining the savings of the American middle-class please let us know so we can go on living a decent life!

brayrobin | Feb 5, 2013 10:57 AM ET Funny article seeing how CNBC pushed the housing investment idea so hard before the bubble burst with specials on all the hot investment areas you should buy. Those turned out to be the worst hit areas and CNBC developed amnesia about all of it`s earlier advice.

Quest4Dollars | Feb 5, 2013 11:04 AM ET It`s hilarious that the Federal Reserve has taken the place of the investment banks in the secondary mortgage market and fueling housing prices just the same. Way to go! Will everyone hate the Fed if this goes down in flames? 100% financing? Yes, it`s out there again! Only this time it`s supported by government programs. The good news is that we`re nowhere near the top.

MBA_grad | Feb 5, 2013 11:07 AM ET I want to buy a house this year. The problem is the landlord of the apartment complex where I rent will not let me out of the lease without facing severe penalties for failure to fulfill terms of the lease. Since I had to sign a 1 yr lease, I am stuck waiting until the fall before I can purchase. Seems like low interest rates will still be available, but house prices have been rising. A cooling off of home price rises would be a welcome relief. Anyone else faced with the rental lease dilemma?

xdemocrat68 | Feb 5, 2013 11:07 AM ET How quickly we Americans forget out past mistakes. The housing bubble is here again, fed by low interest rates. Housing prices in my area going through the roof, but real estate agents here are pushing these high prices by telling buyers you will never see these low rates again. Six years ago the same agents were telling people buy, buy ,buy because its a great investment. While most blamed blame Wall Street for last crisis I blame the real estate people for pushing houses on people who couldn`t afford them.

DanP1966 | Feb 5, 2013 11:08 AM ET I`m selling now. If the crowd is moving into an investment and mom and pop are looking at being landlords.....time to sell. This is a bubble and a fake at that. One supported by controlled inventory by the banks (hence people sitting in homes for 3 years without a payment) and by stupidly low interest rates. Cash out now. Wait for the bubble to burst again....and it will. This time I think even sturdier markets like DC/Northern VA, Boston etc..are going to get hit hard. Broke boomers are going to downsize. Kids cannot get jobs or have large debts from student loans. Where are the first time buyers? Who is the move up buyer? Throw in that the fact that the builders are throwing up homes as fast as they can again and you are going to have a major supply glut. Lot of those mid

Jeff51 | Feb 5, 2013 11:14 AM ET Stock market up 100% since 2008 but many homeowners are still underwater on their mortgages. Yet, somebody can produce an article like this? Really?

Earth_Scientist | Feb 5, 2013 11:15 AM ET Prices relative to income are no bargains. It`s hard to understand how prices rise when wages don`t, unless it`s just speculators. It begs the question: `what happens when the flippers want to sell ?` This is the question that was answered in 2007: `prices go back down`. If you`re thinking of buying, check the price history of the property and a few neighboring properties. You can trend-line home prices, offer the seller maybe a 1-2% per year rate of return for his trouble, about the rate of inflation. But, don`t try to out-bid a speculator who can borrow from The Fed; you`ll lose a LOT of money.

WxTrender | Feb 5, 2013 11:26 AM ET There is no bubble...most markets are weak and continue to remain that way. My home is down another 10% over the last year but sales are slowly picking up. So what about Florida, Phoenix, CA and Vegas...those markets were significantly depressed so a bounce back is in order. New homes still cost a certain amount of money to be built and right now if you tried to resell that home the next day the market is well below what it cost to build it. Thus there is some price appreciation that is going to need to happen before things are balanced.

WillRadar | Feb 5, 2013 11:37 AM ET @MBA_grad...Not facing the same problem with you but if you are concerned about paying more for a house why wait? If you have to pay the rent anyway, why not buy now and pay both mortgage and rent. Especially if you think you will save money in the long run by buying now. You could also find someone to sublease your apartment. Also is the penalty might be less then what it would cost to pay full rent until the end of your contract.






Start a Conversation - Add Comments

Your Comment: ( Please enter all fields and security code. )

Name:
Email:
Website:
Topic:
Comments:
 
Word Verification:
 

Latest Comments

Renting your house is definitely a smart move over time - Mr.Clumpus | Feb 5, 2013 12:41 PM ET Renting your house is definitely a smart move over time. All of the world`s wealthiest people rent because it`s such a good deal! Also, when you rent you don`t pa... - by Cypress52

You will not sell in two years for 200k - Cooleridge | Jan 29, 2013 11:24 AM ET "Huge demand as the Obama economy is creating massive wealth" Is this a joke? I voted for Obama but "...massive wealth?" I don`t think so. BTW, You overpaid. Whe... - by Cheap5p

traditional ways of approving home loan - ckoffend | Jan 11, 2013 07:26 AM ET Remember the politicians! Thanks to them, Barney Frank in particular, Fannie and Freddie were by LAW required to "buy" or "underwrite" more than 50% of their "loan... - by OldTimer555

US Consumer Watchdog Tightens Mortgage Lending Rules on Banks - matt1966 | Jan 10, 2013 05:11 AM ET It`s a shame that it`s taken until now to codify these common sense rules. On the other hand, it`s a shame that it`s even necessary to codify these common sense ru... - by GZ3C

Homes for sale for an average of 6-12 months - MBA_grad | Jan 28, 2013 10:38 AM ET Here in the Desert Southwest, I can`t find a decent home to buy. Most houses in my area have been for sale for an average of 6-12 months, with only a few new ones ... - by BCNw5



Housing Market Already Shows Signs of a New Bubble

Real Estate Agent Directory

Are you looking for a real estate agent in your area? At housing news blog, you can search for your local realtor and real estate service by using our agent search features.

Real Estate Agent Directory

Get listed!

Are you a real estate agent? Get listed for free with us! Complete a real estate agent profile form and get listed in a few days. Click on the link below to get started!

Free agent profile!