"Hyper-Extended" Markets "Will Sour": NAR
Some experts are changing their tune, reports Inman News. "David Lereah, chief economist for the National Association of Realtors (said) during a presentation Thursday at the NARs' midyear meetings, he expects that some hyper-extended local real estate markets will sour within the next couple of years, while the overall housing market should remain robust for at least the next couple of years."
"'Loose lending and speculative buying – that, in my opinion, is the greatest risk that our industry faces right now,' Lereah said."
He just can't bring himself to admit the obvious. "Most local 'balloons' in home prices 'will deflate rather than pop,' though 'several local markets will pop over the next couple of years,' he said."
"For the past four years, Lereah has predicted a let-up in the galloping housing market, but he said it hasn't yet paused. 'The stars are aligned for the housing sector. I say this is the Golden Age of real estate.'"