These recent price increases have some of the bobbing heads on the 24 hour business/news providers practically apoplectic. Some metro areas are now showing what could be termed rather frothy rises; Phoenix saw a year-over-year positive return of 22.5 percent, San Francisco saw an increase of 22.2 percent, Las Vegas saw an increase of 20.6 percent, Atlanta saw an increase of 19.1 percent and Detroit saw an increase of 18.5 percent. Las Vegas saw a month-to-month increase of 1.4 percent, a rather significant jump. Keep in mind that these cities were terribly hard-hit during the decline, however, there is really no particular economic reason why their prices have rebounded as they have. This certainly has the appearance of a mini-bubble, doesn't it?
Trying to revive the madness of the 90's and mid 00's is futile. The unemployment situation is totally different than it was during those years, today many folks are out of work or just getting by on PT work. I seriously doubt these people desire to upgrade or start flipping houses again for a profit, I just don't see it. Lets build our economy again and worry about housing last. Beside the so called Affordable Healthcare will be another added expanse for many households, yes I can see the frenzy now...Not.
No comments:
Post a Comment