Category: Real Estate, Think Tank

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4 Responses to “The Recent Boom in House Prices: Why Is This Time Different?”

  1. wally says:

    A “boom” in house prices? Really? Not in any universe I live in.

  2. howardoark says:

    The implication here seems to be that the rise in home prices (in Oakland where I live they’re up around 30% from the bottom) is driven by investors and not by new family formation. If true, it will likely end badly which may be an answer to Barry’s question about whether he’s too bullish.

  3. DiggidyDan says:

    I wouldn’t call it a “boom” yet. At least not in the hardest hit areas. Here in Florida, where housing prices dropped 60+% it was more of a DC Bounce of inventory clearing. Now we are seeing prices go down again as banks begin to blow the next wave of inventory off their balance sheets. My home is still over 50% underwater, but still about $300 a month cheaper than rent. Simple math dictates that to make up a loss of 60%, you need a rally of 150%, so until we start seeing jumps that can approach that magnitude over a couple of years, I’d say we are hardly in a boom!

    I really want to sell my home, as my employer wishes for me to move to a different city 150 miles away, but I am so far underwater, I’m SOL, so looks like i will be biting the bullet and renting for a while as the market clears.