Home prices across Silicon Valley – and most of the rest of the nation – have rebounded well after the recession of 2008. As we move into the winter months, analysts and real estate industry professionals are asking a question that can be phrased in different ways but means the same thing: Are we moving further into a bubble that’s going to burst? A Nov. 16, 2015 report on Bloomberg.com explains how the financial crisis several years ago was fueled by elements that aren’t present in our current situation of escalating home prices with no clear end in sight. The report includes conversations with economists and San Francisco Fed Chairman John Williams.
A study by the Federal Reserve Bank of San Francisco determined that while “[t]he red flags [signaling impending crisis] are not evident in the current housing recovery,” regulators and policy makers must “remain vigilant to prevent a replay of the mid-2000s experience.”
It’s a fascinating look at a topic with widespread implications. Read the entire article: Here's How Today's Higher Home Prices Differ From Bubble Era