More on the housing bubble. After my inept posting a couple days ago on the housing bubble in Boston and nationally, the Economist comes to the rescue with its take on the likelihood of a bubble collapse in housing. As usual they hedge their bets on the matter but in sum seem to come down on the side that there’s a bubble in the US but not as severe as the stock bubble was. Essentially, housing prices are rising faster than rents. And unlike with previous real-estate bubble bursts, the lack of inflation may well put extra pressure on prices to actually come down instead of linger in a holding pattern. Not that I’m buying anytime soon, but watching Boston’s market, I’m curious to see what lies ahead.
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