Industry News

Don’t believe real estate bubble theory

Housing still good to grow, builder group's economists predict

National Association of Home Builders administrators and economic forecasters don't expect the booming housing market to hit a wall. In fact, indicators suggest the housing sector should do well for the next several years, said Jim Glassman, a senior economist for JP Morgan Chase. Glassman, who joined NAHB leaders Wednesday in a discussion of economic trends for the industry, said it is time to burst the bubble theory. Inflation has dropped to 40-year lows while household income is roughly keeping pace with escalating home prices and debt service is very manageable these days. "There is nothing going on to suggest that home prices are straining," he said. "I don't think there is anything spiky going on." Take an Inman Pulse survey on the state of your housing market. Any increases in interest rates will likely be due to the improving health of the overall economy, such as an increase in employment and income levels, he said, and shouldn't dramatically impact the housing market. ...