Comparing the Plunge and the Rebound Home Prices – Not a New Bubble

Lately there have been a lot of headlines indicating that there is a new housing bubble forming due to housing prices increase….don’t believe them!

Although Phoenix, Detroit, and San Francisco are up more than 25% from their bottom, none of the cities listed above have reached their previous peaks levels.  A few regions are also seeing a huge increase in housing demand, but this is partially due to low interest rates on mortgages and investors searching for opportunities.

The prices during the peak were referred to as a “bubble” and may not have been justified; but how can you say that we are in a bubble again when the levels are 27% lower than the last bubble?

Click here to read the full article >>