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:
â€œWeâ€™re definitely not in a bubble.â€?
â€œWe have a handful of markets that are frothy and probably have hit an affordability wall of sorts butâ€¦while prices nominally have surpassed the 2006 peak, weâ€™re not talking about 2006 dollars.â€?
Christopher Thornberg, Partner at Beacon Economics:
â€œThere is no direct or indirect sign of any kind of bubble.â€?
â€œSteady as she goes. Prices continue to rise. Sales roughly flat.â€¦Overall this market is in an almost boring place.â€?
Bill McBride, Calculated Risk:
â€œI wouldn’t call house prices a bubble.â€?
â€œSo 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.â€?
David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices:
â€œHousing is not repeating the bubble period of 2000-2006.â€?
â€œâ€¦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 monthsâ€™ supply is declining, not surging.â€?
Bing Bai & Edward Golding, Urban Institute:
â€œWe are not in a bubble and nowhere near the situation preceding the 2008 housing crisis.â€?
â€œDespite recent increases, house prices remain affordable by historical standards, suggesting that home prices are tracking a broader economic expansion.â€?
Source: Keeping Current Matters