Comments about ‘Utah housing still bubbling’

Thank you for the good news in this time of un-clairty

How can "bubbling" be "good news"? The whole point of a bubble is that it must burst. It would be helpful for the future stability of our society if people woke up to simple economic facts: house price inflation is NOT a signature of a stable economy - the second and third largest economies in the world have enjoyed stable or even deflationary prices for the past 20 years. House price inflation is driven purely by speculation - and we all know where this landed us after the crash in 1929 (world war II, in case you'd forgotten).

Wow, nothing like quoting a real estate broker about home prices. No bias at all.

John: I agree with you that "bubbling" doesn't infer a good status, however the leap to World War II is a little hard for me to follow. Are you trying to infer that real estate speculators are going to cause another World War? I guess I am confused... That being said I believe all homeowners in Utah will be glad to know their homes increased in value to over the past 12 months. Furthermore areas that were drastically overvalued (California) and expected to just drop have done that; a whole 1%. Furthermore your reference to those economies have far more socio-economic implications to review (more emmigration than immigration leads to a surplus of supply and a reduction of demand [see begininning economics for further understanding]). Indeed the article did read like a nice plug for realtors, however it is good news for those who own property in what has been a drastically undervalued area. Still, I would love to understand that connection between WWII and housing speculation; google has yet to provide me with ample evidence!

Look closer at this market. Inventory is building fast. The data points this article looks at are trailing indicators. Look at the indicators that predict the near future and you will see that inventory is building, land prices are at a point where builders are having a tough time making a profit, and the higher end markets are already overbuilt. This could result in a significant oversupply real soon, especially if investors start selling as you are seeing in Nevada, Phoenix, and Idaho. Proceed with caution.

Prices are coming down. The market is overinflated. By people buying into 2-3 homes, trying to sell a year later to make a profit, the housing demand is not "real". Realators/Investors want you to think otherwise.

Finally the real worth of the house is what somebody can pay for it. It may be appraised for $300,000 but if nobody can purchase it what does that have to do with anything.

If you purchased a home to have some place to live, raise a family, good for you. If you purchased expecting to make a profit I would be a little worried.