The Babe Theory Of Political Movements.
Mar. 21, 2005 11:50 AM
Iran's Sham Election In Houston.
June 20, 2005 5:36 AM
Yes, Kanye, Bush Does Care.
Oct. 31, 2005 12:41 AM
Health Care vs. Wealth Care.
Nov. 23, 2005 3:28 PM
Americans Voting With Their Feet.
Nov. 30, 2005 1:33 PM
Idea Majorities Matter.
May 12, 2006 6:15 PM
Twilight Zone Economics.
Oct. 17, 2006 12:30 AM
The "Shrinking" Middle Class.
Dec. 13, 2006 1:01 PM
From Ashes, GOP Opportunities.
Dec. 18, 2006 6:37 PM
Battle Between Entitlements & Pork.
Dec. 21, 2006 12:31 PM
Let Economic Freedom Reign.
Dec. 22, 2006 10:22 PM
Biggest Health Care Moment In Decades.
July 25, 2007 4:32 PM
Unions Antithetical to Liberty.
May 28, 2008 11:12 PM
Right To Work States Rock.
June 9, 2008 12:25 PM
Social Security Reform Thursday.
March 13, 2008
Caption Contest: Enter Today!
Due: July 29, 2008
The Carnival Of Classiness.
Mar. 14, 2006
Quotational Therapy: Obama.
Apr. 4, 2008
Mainstream Melee: Wolfowitz.
May 19, 2007
Pundit Roundtable: Leaks.
July 9, 2006
A WILLisms.com(ic), by Ken McCracken
July 14, 2006
Powered by Movable Type 3.17
Site Design by Sekimori
WILLisms.com June 2008 Book of the Month (certified classy):
The WILLisms.com Gift Shop:
This Week's Carnival of Revolutions:
Carnival Home Base:
Trivia Tidbit Of The Day: Part 149 -- Housing Bubble.
Yesterday, the Commerce Department announced that new home sales increased by 6.5% in July, and a 27.7% increase since July 2004 (.pdf). This came on the heels of news on Tuesday from the National Association of Realtors (NAR) that existing home sales dipped in the month of July by 2.6% below the record pace in June (.pdf).
The Tuesday slowdown spooked "the market/Wall Street" a bit, which is sort of silly, considering July was still the third strongest month on record for existing home sales, after June and April of this year.
All of this brings up the spectre of a housing bubble.
So is there a housing bubble in the U.S.?
The Dallas Fed notes that Texas, for one, is not at risk for a housing bubble burst:
USA TODAY, meanwhile, notes:
Fifty-three metropolitan areas representing 31% of the total U.S. housing market are considered extremely overvalued and confront a high risk of future price corrections, a study conducted by National City Corp. says. The study determines a market extremely overvalued if prices are 30% above where the study estimates they should be based on historic price data, area income, mortgage rates and population density.
The top 10 overvalued areas, according to National City Corp.:
The bottom 10 overvalued areas (or, the top ten undervalued areas), according to National City Corp.:
Economics Professor Gary Wolfram of Hillsdale College cautions against housing bubble hysteria, and explains why some areas have seen explosive housing price growth:
If you look closely at such studies, you will find that housing markets in cities that are becoming bedroom communities for larger, wealthier cities, or are becoming a substitute location for another high-priced housing market, will have prices that are higher than you would expect from current residents. But this is simply a reflection of the fact that higher-income people from nearby areas are taking advantage of the low housing prices in the target city and moving in, bidding up the price of the houses that are for sale. Since the housing prices used in these studies would be the value of the houses that are sold, but the incomes of the city will be the incomes of the current residents, it will appear that housing prices are very high relative to income.
Nearly every day, the net effect of the economic indicators (good minus bad) remains surprisingly strong. Interest rates are still historically low. Job growth has been robust. GDP growth has outpaced expectations. As long as the Fed does not suddenly jolt interest rates upward, and as long as we have a growing population and growing economy, with a limited number of places to live in the hottest housing markets, the fears of a housing crash/correction are legitimate but greatly exaggerated.
Previous Trivia Tidbit: Net Migration (Immigration/Emigration).
Posted by Will Franklin · 25 August 2005 09:42 AM
College Station -19%?
Wow. There's been so much development there over the past decade you hardly recognize the place and it's still 20% under average? If I had the money I'd do some speculation around my alma mater.
Posted by: Hoodlumman at August 25, 2005 10:24 AM
Excuse me!... BUT... what is today?
Posted by: Zsa Zsa at August 25, 2005 08:04 PM
Posted by: Hoodlumman at August 25, 2005 09:01 PM