“Never again. That was the sentiment held among legislators as they rallied to pass the Dodd–Frank Wall Street Reform and Consumer Protection Act in 2010. The goal was to outlaw the subprime mortgages that fueled the ’00s housing bubble—which saw U.S. home prices soar 84% between January 2000 and June 2006—and ultimately pushed the country into the deepest recession since the Great Depression.
This Fortune article is an interesting read regarding which regional real estate markets are considered “over-valued” and what exactly that means right now. It also offers some predictions on where prices could decrease as the market shifts. Thankfully, Portland doesn’t look like its headed for any deep dives soon.
Take what you like and leave the rest.
Fast-forward to 2022, and we’re once again hearing “housing bubble” talk. Economist Robert Shiller, who predicted the last housing bubble in 2005, recently hinted that housing may be in another bubble. Economists at the Federal Reserve Bank of Dallas put the real estate industry on edge this spring after they published a paper titled Real-Time Market Monitoring Finds Signs of Brewing U.S. Housing Bubble. Why the renewed concern? Over the past year alone, home prices have gone up four times faster than incomes. Simple economic theory, which dictates that neither home prices nor incomes can outgrow the other for very long, tells us that isn’t sustainable.” To Read The Rest of the Article…