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From the Editors of CU Weekly
IS HOUSING JUST RIGHT, OR TOO HOT?
|Dwight Johnston, Vice President and Chief Economist for the California and Nevada Credit Union Leagues
05/17/13 12:36 PM
Economist Looks at 'Bubble' Talk
The “story of the year” in 2012 in California and Nevada was the housing market recovery, one that continued in the first quarter of 2013. Median prices surged by roughly 20 percent last year—a rise that was fueled by extraordinary demand by investors.
The confluence of Wall Street-type money managers and record low interest rates have caused some behaviors that are characteristic of a “bubble” market. Primarily, multiple offers on homes in many areas have become the rule rather than the exception. As buyers have seen the supply of homes on the market dwindle, they've been aggressive in bidding above asking prices.
Should we worry about a bubble?
Click here to continue reading Dwight Johnston's Economic Perspective column on page 16 within the April/May edition of Credit Union Digest!