Wednesday, May 25, 2005

If this is your first housing bubble, you must buy.



We all know the first rule of housing bubble is you do not talk about housing bubble.

Both the NY Times and Chicago Tribune had front page stories about the housing bubble this morning. This follows a bleak outlook from a WSJ article last week. 2/3rds of all mortgages last year were either variable rate or interest only loans. Housing prices rose sharply last month and for the first time the median price for homes in the U.S. has surpassed $200K. The Tribune article paints a rosier picture, assuring all home owners not to worry, because the Midwest housing market never ever fluctuates as wildly as our friends on the coasts. I guess they haven't walked around West Town lately. See no evil, speak no evil. 2nd rule of housing bubble is you do not talk about housing bubble.