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Housing Bubble

The China Syndrome: Bubble Trouble

Dean Baker | Posted 08.31.2015 | Business
Dean Baker

The financial markets have been through some wild and crazy times over the last two weeks, although it appears that they have finally stabilized. The net effect of all the gyrations is that a serious bubble in China's market seems to have been at least partially deflated. After hugely overreacting to this correction, most other markets have largely recovered. Prices are down from recent peaks, but in nearly all cases well above year-ago levels. But the stock market is really a sideshow; after all, back in 1987 the U.S. market fell by almost 25 percent for no obvious reason, with little noticeable effect on the U.S. economy. The more serious question is what is happening with the underlying economy, and there are some real issues here.

The Progress We've Made Is Vulnerable, Unless We Act to Protect Future Generations

Dennis D. Parker | Posted 06.24.2015 | Politics
Dennis D. Parker

If we do nothing to create meaningful reform, the black homeowners of 2031 will have just 22 percent of the wealth of their white counterparts. That's a larger gap than before the housing bubble burst of 2008. This is not merely a concern; it's an impending crisis.

Is Another Housing Price Bubble Looming?

Jack M. Guttentag | Posted 06.08.2015 | Business
Jack M. Guttentag

Reports of large price increases are now invariably accompanied by concerns about whether or not another bubble may be brewing.

Fannie and Freddie Didn't Do It!

Harlan Green | Posted 05.19.2015 | Business
Harlan Green

As if further confirmation was needed that Fannie Mae and Freddie Mac were not even a minor cause of the housing bubble and consequent bust, the latest judgement against Nomura Securities for selling fraudulent mortgages to Fannie and Freddie should be icing on the cake.

Celebrating Our Great Society

Harlan Green | Posted 05.22.2015 | Business
Harlan Green

We are now celebrating the 50th anniversary of President Johnson's Great Society, enacted for the most part from 1964-66, perhaps the greatest legislative achievement of any president since FDR and the New Deal.

The Emerging Markets Housing Bubble

Jon Hartley | Posted 04.29.2015 | Business
Jon Hartley

While in most advanced economies, housing prices contracted for a prolonged period both during and after the crisis, in emerging markets, housing prices suffered brief declines, recovered quickly and have kept rising since.

Ben Walsh

#TBT To The Great 1980s Llama Bubble

HuffingtonPost.com | Ben Walsh | Posted 02.26.2015 | Business

Llamas are big on the Internet, especially Thursday, because two escaped in Arizona. Funny enough, in the mid-1980s, llamas also were vehicles for ...

Bubble Watch: Home Prices Still 2% Undervalued And Slowing Toward Smooth Landing

Jed Kolko | Posted 03.16.2015 | Business
Jed Kolko

Relative to fundamentals, home prices nationally looked 2% undervalued in the fourth quarter of 2014. Home prices in 70 of the 100 largest metros are less than 10% over- or undervalued.

Seven Years After: Why This Recovery Is Still a Turkey

Dean Baker | Posted 01.24.2015 | Business
Dean Baker

Usually an economy would be fully recovered from the impact of a recession seven years after its onset. Unfortunately, this is not close to being the case now.

The Problem of 'Stupid' in Economics

Dean Baker | Posted 01.17.2015 | Business
Dean Baker

There is some truth to Jonathan Gruber's comment in that most people are ill-informed about major public policy issues. This is in large part due to the fact that, unlike Gruber, most people have day jobs. But even worse, when people do take the time to get informed, the media let them down badly.

What Explains the Election Results? It's (Still) the Economy

Dennis M. Kelleher | Posted 01.10.2015 | Politics
Dennis M. Kelleher

No one should be surprised that the American people are economically insecure and anxious. Seven in 10 voters said the nation's economy is in bad shape. Voters who said the economy was important to them voted 2 to 1 for Republicans.

This Map Depicts The Staggering Highs And Lows Of The U.S. Economy Since 1999

The Huffington Post | Kevin Short | Posted 10.30.2014 | Business

America has been through a roller coaster ride of job creation and job loss over the last 15 years. But sometimes it can be difficult to really grasp ...

Bubble Watch: Home Prices 3% Undervalued, With Few Metros Bubbling Up

Jed Kolko | Posted 12.01.2014 | Business
Jed Kolko

Bubble watching is as much an art as a science because there's no definitive measure of fundamental value.

The Economic Recovery in Black, White, and Brown

Mechele Dickerson | Posted 11.18.2014 | Politics
Mechele Dickerson

While some households and neighborhoods have recovered from the recession, most black and Latino households and neighborhoods are still waiting to recover.

Government Wasn't the Problem

Harlan Green | Posted 11.08.2014 | Business
Harlan Green

If the latest unemployment report tells us anything, it is that government isn't the problem that has caused the weak U.S. recovery, but a private sector that is focused solely on maximizing profits for their investors and CEOs, rather than creating more jobs.

Where 'Back-to-School' Means Private School

Jed Kolko | Posted 10.19.2014 | Education
Jed Kolko

One way or another, good schools cost money. Private school tuition can easily exceed monthly housing costs, but home prices in top-rated public school districts are 32% above the local average.

Robert Rubin and Martin Feldstein Discover Bubbles

Dean Baker | Posted 10.18.2014 | Business
Dean Baker

There you have it: two extremely prominent political figures who got rich off the housing bubble, now taking time from their busy schedule to call on the Fed to raise interest rates and destroy millions of jobs. In the "show no shame" contest, this looks like a real winner.

Cutting Housing Costs When Financial Hardship Strikes

Jed Kolko | Posted 10.08.2014 | HuffPost Home
Jed Kolko

In good economic times as well as in bad, financial hardship can always strike. And when it does, people might have to cut back on housing, which is typically the largest household expense. However, cutting housing costs involves hard tradeoffs.

The Recession's Lost Generation of Homeowners Isn't Millennials - It's the Middle-Aged

Jed Kolko | Posted 10.08.2014 | Business
Jed Kolko

While the housing market is clearly improving, with four of the five key indicators of the housing recovery from our Housing Barometer at least halfway back to normal, it looks like the recovery is happening even without much improvement in first-time homeownership. Does that mean the housing recovery isn't for real? Not so fast.

Cheap Talk at the Fed

Dean Baker | Posted 09.20.2014 | Business
Dean Baker

Federal Reserve Board Chair Janet Yellen made waves in her Congressional testimony last week when she argued that social media and biotech stocks were over-valued. She also said that the price of junk bonds was out of line with historic experience. By making these assertions in a highly visible public forum, Yellen was using the power of the Fed's megaphone to stem the growth of incipient bubbles. This is an approach that some of us have advocated for close to twenty years.

Millennials Are Suburbanizing, While Big Cities Are Having a Baby Boom

Jed Kolko | Posted 08.27.2014 | Business
Jed Kolko

Between 2012 and 2013, population growth for 20-34 year-olds was highest in Colorado Springs and San Antonio, while Austin and Raleigh were tops for 5...

Housing Recovery Shakes Off Early-Spring Slump, According to Trulia's Housing Barometer

Jed Kolko | Posted 08.27.2014 | Business
Jed Kolko

For the first time during the housing recovery, 4 out of 5 Housing Barometer measures are at least halfway back to normal. But young adults are still struggling to get jobs.

Bubble Watch: Home Prices Still Undervalued, But Not For Much Longer

Jed Kolko | Posted 08.26.2014 | Business
Jed Kolko

Home prices now look 3% undervalued compared with long-term fundamentals. Of the 100 largest metros, 76 are undervalued while just 7 are more than 10%...

Baby-Boomer Downsizing? Perhaps Not So Fast

Jed Kolko | Posted 08.13.2014 | Business
Jed Kolko

While the share of 50- to 69-year-olds living in multi-unit buildings rose slightly in 2012 and 2013, the long-term trend among older households shows...

6 Seller Secrets for This Summer's Real Estate Market

Michael Corbett | Posted 07.15.2014 | HuffPost Home
Michael Corbett

Each year, it seems the housing market takes on a different tone. Sometimes it's going to be a sellers' market with inflated prices and bidding wars, and sometimes a buyers' market with tons of choices and low prices.