Dallas Fed research says housing bubbles are ‘brewing’
Housing price expectations may have unanchored from fundamentals, paper finds
Researchers say novel factors could be driving the emergence of a new housing bubble in the US. The team from the Federal Reserve Bank of Dallas notes “growing concern” that house prices “are again becoming unhinged from fundamentals”.
“Expectations-driven explosive appreciation”, or mass inflationary expectations for housing, could be causing housing prices to rise past their true value, say Jarod Coulter and co-authors. The researchers say a correction or a crash is now possible.
“The
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