Emily
Editor, Senior Moderator
https://www.cnn.com/2021/10/27/economy/housing-bubble-risk/index.html
No one seems worried about a housing bubble. Just like last time the bubble burst
By Chris Isidore, CNN Business
Updated 1:34 PM ET, Wed October 27, 2021
...
However, perhaps most bearish expert about the current housing market, Ivy Zelman, CEO of Zelman Associates, thinks the so-called housing shortage is an illusion.
She believes those estimates ignore broader trends like slowing population growth and low rates of new households being formed.
She believes the current pace of building may already be a bit greater than needed. She's worried that with the amount of building in the pipeline, thanks to outside investors entering the market, there soon could be a glut of homes on the market.
But Zelman doesn't believe there will be another collapse in housing prices like the last time. She said that a rise in the 30-year fixed rate mortgage from the current 2.9% to about 4% could be enough to send prices lower.
"A lot of what we're seeing is scary," she said. "We don't know what will happen with interest rates. Some builders are saying, 'We don't have wait lists any more.' But a lot of people are drinking the Kool-Aid and get complacent."
No one seems worried about a housing bubble. Just like last time the bubble burst
By Chris Isidore, CNN Business
Updated 1:34 PM ET, Wed October 27, 2021
...
However, perhaps most bearish expert about the current housing market, Ivy Zelman, CEO of Zelman Associates, thinks the so-called housing shortage is an illusion.
She believes those estimates ignore broader trends like slowing population growth and low rates of new households being formed.
She believes the current pace of building may already be a bit greater than needed. She's worried that with the amount of building in the pipeline, thanks to outside investors entering the market, there soon could be a glut of homes on the market.
But Zelman doesn't believe there will be another collapse in housing prices like the last time. She said that a rise in the 30-year fixed rate mortgage from the current 2.9% to about 4% could be enough to send prices lower.
"A lot of what we're seeing is scary," she said. "We don't know what will happen with interest rates. Some builders are saying, 'We don't have wait lists any more.' But a lot of people are drinking the Kool-Aid and get complacent."