No housing bubble? Not sure I buy the hype...

Posted by $ blarman 10 years, 11 months ago to Economics
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There is unquestionably a stock bubble, as prices there far outstrip profitability statements. But what about the housing market? Did investors learn their lesson from the 2007 crash?

I would submit that because nothing has changed structurally, nothing has changed substantially - regardless of what this article has to say.

All Comments

  • Posted by CircuitGuy 10 years, 11 months ago
    I have not followed the RE market, but IMHO detecting speculation is simple: look at rents. Rents crystalize the actual supply and demand for property without speculative dreams or fears. A rough calculation assumes current interest rates, an 80 LTV, maybe 10% vacancy, and then see if it would cash flow. RE investing is obviously more complicated than that, but the quick-and-dirty rule works.
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  • Posted by freedomforall 10 years, 11 months ago
    Feel good propaganda courtesy of the Wall St looters who created the last collapse and will create the next one.
    Just trust us again.
    (And prepare to be f$%^ed again.)
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  • Posted by SaltyDog 10 years, 11 months ago
    Gee, a major property insurer wouldn't have any reason to say that things are just peachy in the property market, would they?

    I've read where over the last year or so they've started with the little-to-no money down BS again. But this time it's different. (More famous last words.)
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