2017 starts with US housing markets in full mania. This recovery is largely disconnected from household wage gains and with the election results, mortgage interest rates surged making housing even more unaffordable. Now while this blog is largely focused on California and many see things through the Hollywood only lens, a large number of metro areas across the nation saw wicked price increases. This price jump has come in an environment with tight inventory, investors, and low interest rates (until the end of 2016). The fastest growing markets in terms of price gains are not in California. In fact, the top 10 metro areas with more than 1 million people are all outside of California. Will this trend continue into 2017?
The top 10 fastest growing real estate markets
In California we have insane markets like San Francisco where $1.2 million is the entry point for a crap shack. In many ways, the capitulation talk is dominant as the Dow Jones Industrial Average nears 20,000. People are itching to get a piece of the crap shack mania and don’t want to miss out on homes going from $1.2 million to $2 million. Forget about incomes, logic, quality of life, other investments, or the reality that you are buying what is an inflated poorly built property. The delusion now runs very deep.
This post was published at Doctor Housing Bubble on January 2nd, 2017.