Even as we unwind from the biggest housing crash in history, a renowned
economist is warning a new housing mortgage bubble could be
dangerously brewing.
In a riveting interview on Fox Business, Robert Shiller, the famed
economist who invented the Case-Shiller index, widely considered the
nation's most accurate barometer of home sales, said he was alarmed by
the bubble-like characteristics occurring in areas around the country.
"I think in cities like Phoenix and San Francisco we might be seeing some pretty big things developing," Shiller said.
"These things take you by surprise. Bubbles occur in the least optimal
times. That's because people want to buy before the news. So, in the
midst of the recession you could start a bubble."
In July, the median price for new homes sales in the San Francisco Bay
hit its highest level since August of 2008. And reports indicate that
private equity and hedge fund speculators have been buying up foreclosed
properties in record amounts, driving prices higher.
READ MORE: http://moneymorning.com/ob/economist-robert-shiller-on-housing-bubble-are-we-off-to-the-races-again/
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