Housing Market Already Shows Signs of a New Bubble

[flyboy56]

When housing began to simmer back in 2002, prices were rising around seven percent a year, then eight percent in 2004 and a stunning 12 percent in 2005.

At the time, words like "bubble," and "unsustainable," were uttered with every monthly reading. No one had seen home prices soar like that since the mid 1970's.

Historically, prices nationally rise about three to four percent a year. The market was clearly too hot, and by 2007 it had reversed dramatically, with prices falling nationally for the first time in history.

Fast forward to today and the housing recovery.
Barely a year in, home prices rose over eight percent annually in December, according to a new report from CoreLogic. While still down double digits from their 2006 peak, prices are suddenly soaring again and raising some serious red flags.

http://www.cnbc.com/id/100435276

[Marshan Man]

Uh..if they're down by double percentage differences from there 2006 then it's much easier to grow by about 8% annually.

Same concept as saying if you have 1.00 and earn another you've increased your earnings 100 fold or something stupid like that...

Keep wishing and hoping for failurte though.. all this POTUS does is prove you wrong repeatedly.

[soulflower]

Uh..if they're down by double percentage differences from there 2006 then it's much easier to grow by about 8% annually.

Same concept as saying if you have 1.00 and earn another you've increased your earnings 100 fold or something stupid like that...

Keep wishing and hoping for failurte though.. all this POTUS does is prove you wrong repeatedly.

Explaining basic math to a wingnut is a waste of time

[flyboy56]

Explaining basic math to a wingnut is a waste of time

And left wing economy cheerleaders refuse to read what experts say is taking place in the housing market. How is it possible for housing prices to rise so rapidly yet wages are stagnant? That is what bubble looks like.

[jessup270]

There seems to be a rather large group in society who actually root for continued bad news in the housing market, not sure why.

I have no plans to sell my house, but I would like to know that houses are again selling, should my circumstances change because of health, loss of spouse or other factors.

[flyboy56]

There seems to be a rather large group in society who actually root for continued bad news in the housing market, not sure why.

I have no plans to sell my house, but I would like to know that houses are again selling, should my circumstances change because of health, loss of spouse or other factors.

The same people who look at the housing market in a more realistic view also own homes and hope the housing market it indeed getting better. But only if it's because employment is getting better and real wages are increasing. These two factors are necessary if a real housing market recovery is taking place. Otherwise, many people will spend their home equity only to find in a few years their homes will again decrease in value putting them back under water.