The housing market has been strong for much of this year, amid shortages of homes available for sale, skilled labor and suitable land for building. Furthermore, even though the new home sales are at 10 year highs, they are no where near the bubble highs where new home sales were close to 1.4 million in July 2005. This isn't a repeat of the last cycle as we don't see the craziness of subprime and house flipping that was the norm. Banks have been much more cautious in their lending and that should be viewed as positive. As long as long term interest rates stay low, real estate prices should continue to march higher.
“Photo Jul 23, 3 04 19 PM” by danielmoyle is licensed under CC BY 2.0
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