The US real estate bubble starts up again

by 1389 on February 8, 2013

in 1389 (blog admin), Barack Hussein Obama, inflation, real estate

Who’s to blame?

  1. The Fed, for printing money and for keeping interest rates down, so that savings accounts and money markets don’t pay enough to keep up with inflation.
  2. The Obama Administration for making CRA enforcement even worse than it was the first time around.
  3. The desperation of financially strapped homeowners who are borrowing against their home equity. That includes those “reverse mortgage” scams. Before the housing market got so erratic and unpredictable, an older homeowner would simply sell the large home that he no longer needed, and use part of the proceeds to buy a smaller place to live that would cost less to maintain.
Housing bubble with needle

{ 1 comment… read it below or add one }

1 Jim February 11, 2013 at 2:46 pm

I don’t really see a bubble starting anytime soon, it’s more like trying to keep things afloat while the economy continues rebuilding. Yes, the Fed is still printing money and interest rates are low. That’s indicative of a soft economy.

Recent home purchasers (meaning in the last 6-7 years or so) don’t have any equity to pull out. Reverse mortgages really only work when an owner occupant has been in the property for a really long time and has substantial equity.

Overall, the real estate market is rebuilding and there are some hot spots. Hot spots don’t indicate a trend, IMO.

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