Two excerpts, the first from:
http://www.businessinsider.com/shiller-starting-to-worry-about-a-bubble-2013-9
In general, real estate markets are hot right now and I know I’ve never seen so much building and activity in the San Diego area as I do today. And if you list a home in a desirable area you better be prepared for a bidding war.
We’ll see if that continues into the winter months. It usually doesn’t, but who knows. As Robert Shiller knows, those animal spirits often get the best of us.
But San Diego and the other California cities appear to be outliers. After all, the national index is still down 20% from its peak after a 20% climb from the bottom in 2011.
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The rich getting richer – an excerpt from:
http://www.businessinsider.com/albert-edwards-on-inequality-and-housing-2013-9
The anger of the 99% will ultimately not be bought off by yet another central bank inspired housing bubble, engineered to pacify them and divert their attention as their real incomes fall and inequality continues to grow.
The current bubble will burst, despite the Fed postponing the event by climbing to ever higher diving boards. All the time rising inequality is draining the swimming pool dry and the crunch when it comes will be ugly.
“What society needs to grow in an economically optimal fashion is not equality of outcomes, but equality of opportunity,” wrote Edwards.
“But with the grotesque distortions of income now prevailing, one’s lifetime opportunities are so increasingly dominated by what one’s parents income is that the American dream has increasingly become just that a dream, and an increasingly distant one at that.”
maybe some of the people who actually kept paying on their house will finally be rewarded?
“We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can’t have both.”
Louis D. Brandeis
I see certain zip codes in San Diego really growing in inventory. Maybe not North County Coastal, but North Park condos for example the inventory has grown from like less then 10 active listings this summer to approaching 50. What is happening is sellers are finally catching wind of price increases and listings are popping up like wildflowers in spring. I can’t see how 2014 will be better then 2013. But this inventory will be different then 2008/2009. This will be normal equity sellers vs. distressed REO’s and short sales. So I think prices will flatten or slightly decline but not crash again.