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Inflation is part of it, but lower interest rates are also very important in most market segments as they directly affect affordability via monthly payments.
Word is rents have been going up too. One cause for this may be the strategic defaulters who mind it less to overpay for a rental than to pay an equivalent amount of mortgage on an underwater house.
The SJ Mercury News certainly has been working hard as the NAr/CAr's mouthpiece the last few days. They have been putting out daily articles about how rents are exploding and housing is "back" and that buyers should expect bidding wars. Way to go, SJ Murky News.
The SJ Mercury News certainly has been working hard as the NAr/CAr's mouthpiece the last few days. .
SJMN, is and has been for the past 10 years in deep denial regarding the housing market.
When hedge funds can use leverage and get money from the banks at 1% by the hundreds of millions - then buying up every SFR/Condo in sight and renting it out is a sweet sweet deal.
https://mail.google.com/mail/?shva=1#inbox/138a3e4b5b2020ff
This development is new. And not going away. Its all dependent on ZIRP, QE, low rates forever of course.
Its so effed up the wall streeters are buying up millions of homes to rent out - they can get loans for way way less than the 3% mortgage you can get.
Thanks obama!
You can complain about newspapers reporting rent increases, especially if it does not fit your plan for reality. But sadly, the reality is that rents in the SF bay area have gone up 10-12% this past year. There are many reliable sources for this information. sort of like shooting the messenger b/c you don't like the message. My rent last fall went from 3K to 5K for a mediocre 1b/1b apartment. Decided to move out of the city.....
Apparently in Phoenix, AZ prices have risen by 20%!!!!
and will it keep rising 20% YOY for next 5 years????
Seems like hardly a movement up from the bottom.
http://ycharts.com/indicators/case_shiller_home_price_index_phoenix
Seems like hardly a movement up from the bottom.
http://ycharts.com/indicators/case_shiller_home_price_index_phoenix
DO YOUR MATH
Looks like a 10% upward change to me. We'll see if it continues to go up, flat-lines or ends up as noise & dips back down in a year.
Yup. I wouldn't make a "call" on it until it is filled in through December though. This chart, 5 years from now with data from 2008 - 2017, will probably be in the dictionary as an illustration under "volatile".
Prices of homes seem to be rising, including the national median. The increase does not make sense per fundamentals..i.e. incomes, unemployment etc. but I am attributing this to inflation.
Apparently in Phoenix, AZ prices have risen by 20%!!!!
http://www.azcentral.com/business/realestate/articles/2012/04/26/20120426phoenix-area-homes-prices-up-20-percent.html
What is the possibility that home prices will continue inflating? The Fed has pledged to keep interest rates super low through 2014 so is this the right time to buy?