Home sales and prices are increasing so dramatically, many people are wondering if another “bubble” situation might be just around the corner.
Most housing industry leaders and economists doubt a housing bubble will resurface in the foreseeable future. Despite double-digit price gains in many markets, the housing outlook is bubble free for now as the sector recovers for the next several years, experts say.
Leading off a panel of economists addressing a gathering of journalists, Lawrence Yun, chief economist for the National Association of Realtors, said he expected a multiyear recovery as home price growth lifts more owners out of underwater situations and helps the economy.
“Housing wealth is easily offsetting the negative effect of sequestration,” Yun told the National Association of Real Estate Editors. But the normally housing bullish economist tempered his optimism because double-digit increases in home prices are outpacing income growth, it was noted in a Real Trends report.
“Any time that happens over a sustained period it is an unhealthy state for the country,” Yun added.
The Wall Street Journal posted the following statement in explaining why the market might look as though another bubble might be emerging:
Bedford New York Real Estate | Bedford NY Homes by Robert Paul Realtor » Blog Archive » Another ‘bubble’ in housing is unlikely | Katonah Real Estate.