By Nick Timiraos | The Wall Street Journal
Home prices have been zooming up over the past year in many of the housing markets that saw the biggest declines. Recently, some pundits have grown wary of the rally, arguing that it’s unsupported by fundamentals and marks the beginning of another housing bubble.
Housing is recovering due to the extremely low supply of homes for sale. Demand, meanwhile, is up amid strong appetite from investors and from extremely favorable affordability conditions thanks to record-low interest rates.
The upshot is that the recovery is unfolding faster than it would due to low inventory, low interest rates, and investors. But does that make for another bubble? Ivy Zelman and John Burns, two housing analysts that were among the first to call
the bottom last year, highlighted three misunderstood concerns about the housing market:
Also: RealtyTrac: Phoenix still a top market for home investors
Rising real estate tide not lifting U.S. cities’ revenue | Reuters
10% of California home inventory has been flipped twice in the last year | The Wall Street Journal
If you’d like to discuss real estate matters, contact RLG founder Jordan Rose, jrose@roselawgroup.com
