With residential home prices continuing to appreciate at levels above
historic norms, some are questioning if we are heading toward another housing
bubble (and subsequent burst) like the one we experienced in 2006-2008.
Recently, five housing experts weighed in on the question.
Rick Sharga, Executive
VP at Ten-X:
“We’re definitely not in a bubble.”
“We have a handful of markets that are frothy and probably have hit an
affordability wall of sorts but…while prices nominally have surpassed the 2006
peak, we’re not talking about 2006 dollars.”
Christopher
Thornberg, Partner at Beacon Economics:
“There is no direct or indirect sign of any kind of bubble.”
“Steady as she goes. Prices continue to rise. Sales roughly
flat.…Overall this market is in an almost boring place.”
Bill McBride, Calculated
Risk:
“I wouldn't call house prices a bubble.”
“So prices may be a little overvalued, but there is little speculation
and I don't expect house prices to decline nationally like during the bust.”
David M. Blitzer, Managing
Director and Chairman of the Index Committee at S&P Dow Jones
Indices:
“Housing is not repeating the bubble period of 2000-2006.”
“…price increases vary unlike the earlier period when rising prices were
almost universal; the number of homes sold annually is 20% less today than in
the earlier period and the months’ supply is declining, not surging.”
Bing Bai &
Edward Golding, Urban Institute:
“We are not in a bubble and nowhere near the situation preceding the
2008 housing crisis.”
“Despite recent increases, house prices remain affordable by historical
standards, suggesting that home prices are tracking a broader economic
expansion.”
Wow we've got a lot of opinion about the subject! What do you think? Email me today with your thoughts: Kathleen
In the meantime, if you have had any thoughts about putting your North of Boston in Essex County on the North Shore home on the market, call us today and put our 40 plus years of experience to work for you!
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