Will We Avoid Another Housing Loan

There are many critics who are saying that another housing bubble is on the horizon. I found a chart that gave me a personal reminder about what type of price appreciation led up to the last big burst. The “Greater Fool Theory” is that it doesn’t matter how much a house costs today because there’s a “greater fool” who will pay more for it tomorrow.

Seeing this chart showing the housing price appreciation between the years of 1998 to 2006 stopped me dead in my tracks and reminded me of this runaway freight train that was the real estate market. It shows the U.S. States with the highest rates of housing price appreciation during those years. Two examples include:

If you care to see the rest of the 9 States listed in the chart, follow this link to view the chart: http://privatemoneyutah.com/sobering-reminder-avoid-another-housing-bubble/

Even short sales are becoming extinct. The best route for underwater mortgages to get out from underwater was to negotiate a short sale with the bank. Some short sales in waiting are going away as banks see some of the houses pending short sales are worth more than they were only 6 months ago. How is this possible?

What is your opinion on this discussion? Take a walk in memory lane by clicking on the chart. Those numbers will certainly make you think as we go into 2014.

Posted by Corey Curwick Dutton