According to Fortune Magazine, along with China, Australia, Brazil and New Zealand the US is one of the housing bubbles to keep an eye on. Although it appears as if things are recovering from the market crash of 2007, “higher prices in some parts of the U.S. have led one top Federal Reserve official to admit he is seeing fresh signs of a housing bubble,” as reported by CNNMoney.
“I’m beginning to see signs not just in my district but across the country that we are entering, once again, a housing bubble,” Dallas Fed President Richard Fisher told reporters last month after a speech in New York. “So that leads me … to be very cautious about our mortgage-backed securities purchase program.” (From CNNMoney)
With the price of single-family homes on rise, and the “Fed’s easy money policies” keeping mortgage rates low, asset prices can see inflation, according to Fisher.
Please read “5 Housing Bubbles to Watch” for details on the housing bubbles in China, Australia, Brazil, and New Zealand.
- An alarming map of the 17 countries with possible housing bubbles (washingtonpost.com)
- Are investors causing a U.S. housing bubble? (canadianbusiness.com)
- Is California the beginning of a new U.S. housing bubble? (canadianbusiness.com)