12 thoughts on “Uh-oh.

  1. We are, once again, experiencing one of the greatest housing booms in United States history. How long this will last and where it is heading next are impossible to know now. But it is time to take notice: My data shows that this is the United States’ third biggest housing boom in the modern era….

    The No. 1 boom occurred from February 1997 to October 2006, when real prices of existing United States homes rose 74 percent. This was a period of intense speculative enthusiasm — for houses and for financial instruments based on mortgages as investments — and it was also a time of great regulatory complacency. The term “flipping houses” became popular then. People exploited the boom by buying homes and selling them only months later at a huge profit.

    That boom ended disastrously.

    1. I built in NV in 2006/07, at the height. I only lost about $80K when I sold it last year. I hear the market is finally recovering over there, but I couldn't wait anymore. I'm happy here, and you can't put a price on that. Right?

  2. But the market reaction to interest rates is hardly immediate or predictable. The housing market does not react as directly as you might expect to interest rate movements. Over the nearly seven years of the current boom, from February 2012 to the present, all major domestic interest rates have increased, not decreased. So, while interest rates have been low, they have moved the wrong way, yet the boom has continued.

    "So we'll be alright, right? RIGHTT?"

Leave a Reply

Your email address will not be published. Required fields are marked *