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People haven't been this optimistic about house prices since just before the crash

By Patrick following x   2018 May 15, 6:30pm 808 views   3 comments   watch   nsfw   quote     share    


https://eresearch.fidelity.com/eresearch/markets_sectors/news/story.jhtml?storyid=201805132218MRKTWTCHNEWS_SVC000118

A majority of U.S. adults (64%) continue to believe home prices in their local area will increase over the next year, a survey released this week (http://news.gallup.com/poll/233639/highest-percentage-2005-expect-home-prices-rise.aspx) by polling firm Gallup concluded. That's up nine percentage points over the past two years and is the highest percentage since before the housing market crash and Great Recession in the mid-2000s.

The level of optimism is edging closer to the 70% of adults in 2005 who said prices would continue rising. That, of course, was less than one year before the peak of the housing market bubble in early 2006, which was largely fueled by a wave of subprime lending. (Roughly one-quarter of respondents in both 2005 and 2018 said they believed house prices would remain the same.) ...

There are signs that the U.S. housing market could be overheating. The number of U.S. homes being flipped--bought and sold within a year--reached an 11-year high last year with more than 200,000 homes being flipped for second consecutive year, according to research firm Attom Data Solutions. Flipping peaked at 334,000 homes in 2005, again just before the market's peak.
1   ThreeBays   ignore (0)   2018 May 15, 7:27pm   ↑ like (1)   ↓ dislike (0)   quote   flag        



The optimism indicator fell prior to the crash. If this is anything to go by, housing will continue to get more expensive for now.

"The all-time high percentage saying it is a good time to buy a house was 81% in 2003"
2   anonymous   ignore (null)   2018 May 15, 7:37pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

ThreeBays says

...housing will continue to get more expensive for now.
lol, homeowner
3   APOCALYPSEFUCKisShostikovitch   ignore (37)   2018 May 15, 9:23pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

Houses are meant to be flipped for double the price purchased, at least on an hourly basis.

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