Steep home price gains in certain U.S. markets, including Brooklyn, have some economists worried that the increases are unsustainable for a healthy housing market, forecasting another real estate bubble as Bloomberg News reported.
As a matter of fact, The two trends underscore the nature of the housing rebound: Gains in pricing have been driven significantly by investors, leaving many would-be buyers behind. I is because we honor the reality for the Demand and Supply analysis. Prices are rising because of strong demand, a lack of supply and a sharp recovery in the hardest-hit markets. The number of foreclosed homes coming to market has also dropped dramatically. But because lending standards remain tight, the everyday home shopper is often losing out to investors able to pay cash.
"It's become harder, because the pricing has moved up," John Gray, the global head of real estate for private equity firm Blackstone Group, said in a trip to Los Angeles last month. "L.A. is probably the toughest market."
The big swings in prices — particularly in the cities of Phoenix, Las Vegas and Atlanta — have some economists concerned that these markets are in danger of overheating.All of the cities covered by the index have risen year-over-year for two consecutive months. New York, Chicago and Boston saw the smallest year-over-year gains in February.
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