Federal Reserve Governor Christopher Waller has no doubt about how competitive today’s housing market is.
His reasoning has to do with the forces that are contributing to the run-up in housing costs. “My short answer is that unlike the housing bubble and crash of mid 2000s, the recent increase seems to be sustained by the substantive supply and demand issues,” he said, and “not by excessive leverage, looser underwriting standards or financial speculation.”
“‘Unlike the housing bubble and crash of mid 2000s, the recent increase seems to be sustained by the substantive supply and demand issues.’” Though Waller may not be concerned about the potential for a burst housing bubble, he did signal that the cost of housing is becoming a bigger concern for monetary policy.
True!!! Housing Market is the best investment.
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