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Colony's Tom Barrack Sees Bubble in U.S. Housing Market
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2013 Apr 8, 5:57am 2,250 views 5 comments
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CashWillCrash
2013 Apr 8, 6:00am
The last bubble was caused by irresponsible lending (and irresponsible borrowing) and the current bubble is being created by Bernanke. Who's next?
AD
2013 Apr 9, 2:22pm
From the housing inventory chart posted on this site and taken from Calculated Risk's site, it seems like supply is still low (i.e., new builds) while there is a a lot of demand out there (from investors) for housing.
Why do people think we're in a new bubble now after 6 years of price decline and now just 1 year of price increase? Maybe we are heading that direction but I think we are still far from a new bobbble.
Local governments looking to enact affordable housing projects/programs as is the case
with San Jose... Guess we havent corrected fully yet.
In certain locations we are in Housing Bubble II.
Where? Well that will be seen in the future. "Roberto" is bullish, and he should be in his 'local' market where there is a bubble, but he buys properties for fair value or below.
In Northern California and Southern California, we are in bubble territory. In other areas the picture is mixed.
What is becoming normal is that it is no longer National but becoming regional.
hllnwlz
2013 Apr 10, 1:50am
Haus -- it's only cheap because of 0% interbank lending and FHA 3.5% down loans. Follow the money.
If people had to come up with 20%, prices would tank.
http://finance.yahoo.com/news/colonys-tom-barrack-sees-bubble-163127179.html
Colony Capital LLC's Tom Barrack said U.S. homes are in danger of becoming overvalued as low borrowing rates and an improving labor market fuel demand.
"We have asset bubbles for sure and asset bubbles are necessary when you don't have growth" in the economy, Barrack, Colony's founder and chairman, said today in an interview at the Bloomberg Doha Conference.
#housing