Martes, Abril 1, 2014

Some large cities at risk of new U.S. housing bubble

The sharp increase in the price of houses in some of the largest cities in the United States point to a possible new housing bubble in those areas , according to Robert Shiller , who helped create an influential indicator of housing prices in the U.S. .

Shiller said that large price increases in Las Vegas , Los Angeles, San Francisco , Miami and Phoenix , driven in part by a large flow of money from outside investors , are a possible sign of future problems .

" There is a risk of bubbles in these cities ," he told Reuters on Wednesday Shiller , co -founder of the home price index S & P / Case- Shiller . " The increase in housing prices has been dramatic. Resembles the beginning of the most recent bubble ," he added .

There is a risk that prices will rise for another year in these areas and then falling back , hurting new buyers trying to compete in markets where low inventories and Wall Street investors bid up prices with their money .

The latest report from the Case- Shiller Standard & Poor's index showed that prices of single-family homes in 20 metropolitan areas in the United States rose 12.1 percent in April , marking the largest annual increase in seven years.

The gains were led by price increases of 24 percent in San Francisco , 22.3 percent in Las Vegas, 21.5 percent in Phoenix, 19 percent in Los Angeles and 13 percent in Miami.

Price increases were the latest sign that the U.S. housing market , a mainstay of the economy, may be in a sustainable recovery from the housing crisis that caused the 2008 financial crisis and subsequent recession.

Shiller said it is still too early to predict how healthy market recovery , and he was not sure if overall prices would continue to rise for another year.

However, he said it was unlikely a collapse of the housing market in the short term , because lending standards have tightened and government oversight of the mortgage industry has been strengthened.

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