China economic stimulus program There have been many factors that may have led to rising housing prices. Possible contributors include low interest rates and increased bank lending,  beginning in under Wen Jiabao which allowed cheap credit for the construction and purchase of property while making competing debt investments less appealing.
Mortgage payments weren't being met. Thousands of homes foreclosed. And millions lost their jobs. While the housing market has been in recovery mode, there's talk that another housing bubble could arise.
So how much cause for concern is there really? The following is an edited transcript of our conversation.
So this is in the part in the movie where someone looks down at their screen and says, "Hmmm. Is there a bubble inflating, do you think, with real estate prices in these United States? Well, there's a group of people that think the answer is yes.
I mean, when I've been thinking about China housing bubble I go, " bitcoin. Now he's saying, look, housing prices: The homebuilder stocks — that was the best performing group last year.
Another bubble is in the making. And so all of a sudden, people are starting to pore over the numbers and say, "Wait a second, should we be looking at real estate?
All right, a bubble when it comes to house prices. Isn't that a little overinflated as a claim at this point? I think it is and Bill McBride, he also was very accurate in predicting the housing market bubble. He's with Calculated Riskand he says, look, you're just not seeing the kind of rampant speculation that you saw back in And you know, lenders are still reasonably conservative.
But still, places like Cleveland are struggling to come out and see their prices appreciate. But I say this twice a week: Trees don't grow to the sky.
What are some headwinds for the real estate market? Boy, there are a number of headwinds. Forwe got the tax cuts.
And then, there's Jerome Powell: And he's clearly in the, "Let's raise interest rates" camp. And then I think housing prices in most parts of the country have gotten ahead of incomes.
Which is a key thing, because when that is the case, maybe you should not be buying. And so when it comes to your own household-personal finances, you don't want to be house-poor. Talk to anybody who a decade ago was house-poor, and how miserable that can be.
So whether or not there's a bubble, if you are stretching your finances to buy, that's a signal not to buy.So the question the is simple: with the fate of the domestic, and therefore global, economy in the hands of China's housing sector, what happens next.
The answer is unclear, however as DB warns, "property bubble bursts in other countries were often preceded by higher interest rates.". Jan 22, · NANJING, China — China has tried just about everything to tame a property market in which home prices sometimes jump around like the value of Bitcoin.
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