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Brumby
Or is it just the market recorrecting itself back to where housing prices should be based on inventory and demand?

http://newsblogs.chicagotribune.com/burns-...ady-can-it.html

QUOTE
Home prices rose in August at such a rapid pace that Yale University Economist Robert Shiller, the housing guru, dragged out the "B" word.

In an interview on Reuters Television, Shiller said home prices have shot up in recent months to levels that may be unsustainable, and in some parts of the country approach "bubble territory." How could a market down and out for three years suddenly re-inflate into a bubble?

In San Francisco or San Diego -- bubble territory, by Shiller's reckoning -- prices have advanced firmly past the January level.

Basket-case markets Detroit and Miami, meantime, still clock in well below where they stood in January. As Mr. Bubble well knows, all real estate is local.
freakintjwheeler
QUOTE (Brumby @ Oct 28 2009, 10:05 AM) *
Or is it just the market recorrecting itself back to where housing prices should be based on inventory and demand?

http://newsblogs.chicagotribune.com/burns-...ady-can-it.html


I don't get it. Why in the world would anyone pay "bubble" prices in San Francisco or San Diego?

Are they simply wanted to divest their capital and put it into real estate because they don't trust the market?

Makes no sense to me.
Orangeburger
"Just Desserts and Markets Being Silly Again" by Jeremy Grantham. A trashing of Greenspan and Bernanke (and low interest rates and, I suppose, wealth redistribution).

http://www.ritholtz.com/blog/2009/11/just-...ng-silly-again/
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