A recipe for housing bubbles

Analyst says development restraints inflated prices

AUSTIN, Texas — Before the subprime time bomb, there was a "witch’s brew" at work that hyperinflated home prices in many markets, and that same concoction could kick in during the next real estate boom, according to one housing stats expert.

Mike Inselmann, co-founder and president of Metrostudy, a data company that provides housing and other statistics, said the "unindicted co-conspirators in this whole bubble phenomenon … the genesis of the housing bubble was the witch’s brew of a strong local economy in metro areas that had very restrictive growth limitations."