The bubble is starting to burst?
Well, some Federal Bank lady said Las Vegas would be deflating rapidly yesterday....
You know, the press missed the tech bust so badly they are now trying to cause the housing bust so they can say they reported it.
The media should leave it alone and it will do fine.
The problem is the low rates of interest, and the government also benefits from it.
IMO the banks were getting a 200% increase in profit on home loans a bit over a year ago, now as the rates rose, banks have held back increases having that extra 100% padding to play with.
I think right now their margin is something like 130% profit compared to years ago on a loan.
The states love homes going for 400% more because then they get that high price locked in as the base for property taxes.
I think California got a surprising extra 4 billion in property tax payments which I think Arnold applied to the debt.
The whole thing kind of stinks, how can an average person life in an area where just the property taxes could be $800 a month on a very below average home?
Not according to the aritcle. The bubble is just not getting bigger as fast.