Housing Bubble? Forget About It

A recent article says that most people think that the current trend in housing prices will continue indefinitely! In fact, people are flipping houses as prices are rising fast. Here's the article:

http://finance.yahoo.com/blogs/daily-ticker/largest-gains-home-prices-7-years-forget-bubble-144654731.html?vp=1

Here's the pull-quote:

This pickup in fast-money house trading fueled by ultra-cheap credit furnished by the Federal Reserve and government-backed lenders certainly raises fair questions about whether the rebound in housing is helping the broad public, whose incomes have been stagnant amid the boom in investment markets and high-end consumption.

And there it is again: incomes have been stagnant. Until incomes rise and unemployment falls, most people will not be able to truly afford more expensive homes. In other words, this is a bubble and it will pop.

Prices are still 30% below the high of 2006, so it's still a great time to buy. Don't buy retail, though-buy wholesale. That's what we're doing to protect ourselves.

Check out our site: ForefrontEnterprisesLLC.com.