Ruthie Rocks & Teaching Jim Audio Experience - First rule of housing bubbles? Don't talk about them, economist warns

First rule of housing bubbles? Don't talk about them, economist warns

The first rule of housing bubbles? dont talk about them, economist warns
Zillow senior economist Jeff Tucker is skeptical that a housing bubble is looming, but he worries such talk could hurt future buyers in need of home builders to continue producing new inventory.

What started out as a rather staid academic exercise ended up turning leads across the real estate industry with its rather bold conclusion.

We could be in the early stages of fueling a new housing bubble, a team of researchers working with the Federal Reserve Bank of Dallas proposed a little over a month ago.

According to their telling, ballooning price home price growth may have been spurred, in part, by a shared belief among buyers that price would only continue to go up,regardless of the rental income those properties could produce, or other key economic indicators.

But Tucker doesn't expect that shift to results in widespread home-price reductions. For one thing, demand for homes is likely to be more resilient than the Fed researchers accounted for, he argued.

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