Sentences with phrase «of housing price bubbles»

«This trend raises the distinct possibility of housing price bubbles emerging in some of these hot housing markets,» he adds.

Not exact matches

Advocates for excessive home prices also point out that construction has become a bigger part of the British Columbia economy, equating any effort to deflate Vancouver's housing bubble to act of economic sabotage.

In early 2004, as American house prices roared higher and there came dire warnings from some quarters about the existence of a bubble — accompanied, of course, by strident denials from banks, most economists and the mortgage and real estate industries — Ben Bernanke (then still a governor before he became Fed chairman) addressed the problem of what to tell the American people.

The house - price bubble, combined with record levels of household debt, represent the biggest threat facing the Canadian economy; the sooner real - estate markets mellow and Canadians lower their debt burdens, the better.

But the residential construction industry has remained sick since the bursting of the housing bubble in the late 2000s, even as home prices recovered.

The price tag attached to the 1,700 - square - foot lot shows the extent of the housing bubble in San Francisco, where tech workers create demand faster than the city can build new housing.

The Congressional Budget Office defines asset bubbles as: «An economic development in which the price of a class of physical or financial assets (such as houses or securities) rises to a level that appears to be unsustainable and well above the assets» value as determined by economic fundamentals.

The «search for yield», i.e. for better return on financial investments than the declining interest rate, thus led to the series of bubbles & bursts: deregulated savings & loans (immediately), high - tech stocks (late 90's), mortgage derivatives — > house prices (2000's).

At Berkshire Hathaway's recent annual shareholders meeting, an investor asked Buffett about the relevance of two popular measures of stock market value: 1) market cap - to - GDP, which Buffett once heralded as «probably the best single measure of where valuations stand at any given moment» and 2) the cyclically - adjusted price - earnings ratio (CAPE), which was made famous by Nobel prize winner Robert Shiller and was seen as accurately predicting the dot - com bubble and the housing bubble.

When the inaugural Workforce Housing Scorecard was released in 2008, Orange County was near the height of the «housing bubble» and experiencing rapid acceleration of home Housing Scorecard was released in 2008, Orange County was near the height of the «housing bubble» and experiencing rapid acceleration of home housing bubble» and experiencing rapid acceleration of home prices.

If anything should be clear from the bubbles of recent years, the greatest risks are not when prices are depressed, the economy is weak, and investors are frightened, but rather when prices are elevated and an unendingly positive outlook for technology, or housing, or global growth, or private equity, or emerging markets, or commodities seems all but certain.

Often enough, when excess savings are high, they flow into real estate and stock markets, perhaps even setting off bubbles, with overinvestment in real estate an almost inevitable consequence of rapidly rising housing prices.

This process of «price discovery,» the primary driver of volatility in bitcoin's price, also invites speculation (don't mortgage your house to buy bitcoin) and manipulation (hence the recent talk of tulips and bubbles).

[5] Robert Shiller, the economist who successfully predicted the popping of the Dot - com and U.S. housing bubbles, warned investors against treating Sweden and Norway's markets as safe - havens as the Nordic region is caught up in asset bubbles that will end with plunging asset prices.

In Denver and Boston, for example, home prices are now higher than the peaks reached during the housing bubble of the early to mid 2000s.

Following the peak of the housing bubble in 2006 and the subsequent market collapse, U.S. home prices declined for six years.

Asset bubbles appear to violate this law; consider homebuyers who bought record numbers of houses between 2002 and 2007 despite record home prices.

The IMF has also warned of a possible Swedish housing bubble, saying «There is significant risk of a decline in house prices in coming years, even in a relatively benign economic scenario,» [4] while the OECD warned that Swedish housing prices are overvalued by about 30 percent in relation to income.

An entire generation is locked out of the city's broken and outrageously - bubbled housing markets as the average Londoner would need to triple their salary to # 87,000 to buy an average price property.

To Shiller, whose Case - Shiller Home Price Index is widely recognized as the best measure of U.S. house prices, the parallel between the U.S. bubble and Canada's run - up in home prices measured by the Teranet index is obvious.

Their self - destructive real estate bubble has loaded down their labor force with high debt service and housing costs, whilst their giveaway of public infrastructure to insiders (with no price regulation) has led to high basic living costs.

When I wrote my piece on the residential housing bubble at RealMoney back in May of 2005, I did not focus on the high prices much; instead, I focused on the financing issues:

In the midst of falling commodity prices, devalued currency and the housing market bubble, Barnes states the Canadian economic situation

And everyone acknowledges that it was the sharp mid-decade run - up in interest rates that burst the bubble and caused the collapse in US housing prices and in the value of those mortgage - backed securities that are still wreaking havoc on bank balance sheets all around the world.

Japan's infamous «Lost Decade» was supposed to refer to the stagnant economic period from 1991 until 2000, after the collapse of the asset price bubble in Japanese housing and stocks.

Las Vegas is a case study in the limits of the housing bubble but also the reflection of a new economy driven by a demand for lower price real estate.

In addition to the concern about lenders» strong incentives to offer predatory loans, they argue that such «teaser» payment loans have the risk of boosting housing bubbles as they are popular with both borrowers and lenders, who expect housing prices to continue to rise during bubbles.

We are on the edge of a bubble larger than the one we experienced less than a decade ago as housing prices race back down to where it is affordable and sees demand from new buyers.

To make things worse, Canada's economy has been hit hard by falling oil prices, and investors remain wary of a Canadian housing market that has shown signs of becoming a bubble, as well as rising consumer debt rates.

While no one knows for certain, we do know that the over 1600 % price increase year - to - date surpasses many other previous bubbles, such as the dot - com bubble of the late 1990s, and the recent U.S. housing market bubble.

Of course, house prices could NEVER fall nation - wide and the Internet Bubble ushered in a new normal.

With a bit of luck, prices nationwide could reach close to the all - time peaks seen in the housing bubble a decade ago.

And to date, little about the past few years of hyper - appreciation in real estate prices — greater than that of Bubble 1.0 — has little to do with fundamental, end - user, shelter - buyer demand for houses «in which to live».

In the last few years we've had a housing bubble, a credit bubble, runaway government spending, soaring gas prices, a global recession, high unemployment, the risk of a U.S. debt default, a fiscal crisis in Europe, and the threat of severe inflation.

Saving parts of the economy from the popping of each asset price bubble can leave, and make, the entire economy more prone to larger and potentially more - damaging price bubbles - such as the housing price bubble.

Don't compound them with bailout for mortgage «victims» The housing bubble that was fueled by multidecade low interest rates priced many people out of their dream homes.

They especially take hart that Non-res, non-retail and development stage REITs have only modestly increased in price compared to the start of the housing bubble in the 1990s.

It prevents bubbles, and it prevents investors buying housing and keeping it empty of tenants while waiting to flip it... because prices aren't rising, so there will be no flip.

That's going to hit the general public the hardest, there's going to be a massive mortgage bubble so the price of housing is expanding really quickly and they're just building all these luxury flats when it's incredibly difficult to be on the rental market.

Labour did indeed create 2.5 m jobs, but it took 13 years, not 5, and were brought about at the price of a credit bubble, a housing boom, and a rise of 0.8 m jobs in the public sector — none of which will exist in the next few years.

«I am worried about the dangers of getting into another house price bubble,» the senior Liberal Democrat said» — Daily Telegraph

The result was a temporary worldwide credit bubble, followed by a wave of loan defaults, falling housing prices, banking losses and a dramatic tightening of bank lending.

In Denver and Boston, for example, home prices are now higher than the peaks reached during the housing bubble of the early to mid 2000s.

He found that in July, Peter Andersen of Andersen Economic Research Inc., also examined this risk and found that «the bubble risk for house prices in Canada is highly exaggerated and that new housing is still very affordable in Canada.»

As an example, below is a graph from the latest Black Knight Mortgage Monitor showing the percentage of median income needed to buy a medium - priced home in the country today in comparison to prior to the housing bubble and bust.

By now, home prices have recovered to levels higher than at any time other than the peak three years of the housing bubble.

Looking at the chart of the S&P Corelogic Case - Shiller Home Price Indices, many are wondering if we're in another housing bubble.

Even during the peak of the housing bubble in 2006, the median sales price for a home in Indiana was about $ 64,000, second lowest in the country next to Kansas.

Prior to the well - publicized burst of the housing bubble and the resulting real estate crash that began in earnest in 2007, historical housing price data from the National Association of Realtors (NAR) seemed to support the theory of endlessly rising prices.

Most economists agree that the initial trigger of the crisis was the housing bubble, driven by low interest rates moving the housing prices higher, which peaked in early 2006 and starting to drop in 2006/2007, with the Case — Shiller home price index reporting its largest price drop in its history on Dec 30, 2008.