There Ain’t No Housing Bubble Yet

Friday, June 7, 2013
Posted in category housing bubble

The Street has published an article about the five most undervalued housing markets that are “great bargains” for the person looking for a long-term living plan. Detroit is deemed the “second-most-undervalued market” in the U.S. According to Crain’s Detroit and the Detroit Free Press, the Detroit metro housing market is witnessing a slim inventory and rising values – an 18.5% rise year-over-year. Yet this market is still considered to be a bargain.

“There’s not a lot (of houses) to go around,” said Kandace Carter, a Realtor with Century 21 Row in Livonia. “It means that every house that you’re going to make an offer on, you’re going to be one of 10 or 20 or 55. Several months back, you could have been the only one.”

Today, Richard Fisher of the Dallas Fed was quoted as saying, “We have a booming housing market. I don’t think it’s a bubble yet, but it has corrected enormously, so my personal view would be to slow the rate of acceleration.”  In fact, three federalistas recently called for a halt of the Fed’s purchase of mortgage-backed securities.

Dallas Federal Reserve Bank President Richard Fisher said today buying mortgage bonds risks disrupting the market, while Philadelphia Fed President Charles Plosser said, “it’s not good for the bank to be holding lots of mortgage paper.” Jeffrey Lacker of Richmond said to reporters yesterday the Fed should “get out of the credit allocation business.”

Yet it was only a month ago that the Fed announced its intentions to keep up the purchase of mortgage-backed securities in order to prop up the job market and “contain” inflation. The Wall Street Journal just reported that the Banksters are not only cheering on the “renewed interest” in the purchase of mortgage-backed securities, but they are also hopeful for yet another securitization fiasco.

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One Response to There Ain’t No Housing Bubble Yet

  1. jeannie queenie says:

    June 29th, 2013 at 12:10 am

    It seems to me that this real estate problem is contingent on a couple factors. First would be people able to work to afford mortgage payments, and secondly a non democrat ruling party that does not aid and abet the ‘entitlement mentality’, meaning dis-ease preventing a functioning system. “Detroit residents have paid a heavy price for such a dysfunctional system: a mind-blowing 47% of Detroit residents are functionally illiterate.” That brings us to the real reason why real estate will never get off the ground in Detroit. When almost 1/2 the population is illiterate, how does one think that real estate could ever achieve any semblance of sanity in this environment? Thanks to the democrats/code for dummy rats, kids keep their gray matter on a playing field that doesn’t matter.

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