How to Spot a Regional Real Estate Bubble

How to Spot a Regional Real Estate Bubble

About a month ago, I took a long weekend to visit Seattle. It was my first trip to the Pacific Northwest.

I expected to find a vibrant music scene, a world-famous coffee culture and some spectacular hiking trails - and I was not disappointed. What I did not expect to find, however, was a real estate bubble.

As this week’s chart shows, home prices in the Seattle area have grown 13.3% year over year. That’s more than double the national average home price growth rate.

And that chart isn’t the only indication of trouble in Pacific Northwest real estate prices. The signs of a regional bubble are obvious... if you know where to look.

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This year will probably be the biggest year for homebuilders in a decade

This year will probably be the biggest year for homebuilders in a decade

After housing starts increased in June, experts weighed in, explaining why 2017 could be the best year for new construction in a decade. 

Experts explained the growing imbalance between the number of homes for sale and the demand allowed builders to construct more homes.

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39 million households are paying more for housing than they can afford

39 million households are paying more for housing than they can afford

Rising housing costs are putting a major squeeze on Americans.

Nearly 39 million households can't afford their housing, according to the annual State of the Nation's Housing Report from Harvard's Joint Center for Housing Studies.

Experts generally advise budgeting about 30% of monthly income for rent or mortgage costs.

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How Dodd-Frank helped the wealthy and left the middle class behind

How Dodd-Frank helped the wealthy and left the middle class behind

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 was approved in the aftermath of salient abuses against consumers, and in times of pressure from public opinion and the media. This pressure might have reduced the ability of Congress to foresee all the possible consequences of the new legislation.

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Are We Headed for Another Bursting Housing Bubble in 2017?

Are We Headed for Another Bursting Housing Bubble in 2017?

Housing prices may be appreciating at a seemingly unsustainable rate once again in some markets around the country, but Christopher Thornberg believes the nation’s economic fundamentals will continue to be much more sound in 2017 than when the market began to implode back in 2005.

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