US home prices have soared to new heights and keep on climbing, and now some researchers and economists are saying they have seen signs of a housing bubble brewing. "Our evidence points to abnormal US housing market behavior for the first time since the boom of the early 2000s," the researchers wrote. The consequences of housing market exuberance can include overpriced homes, investments based on distorted expectations of returns and reduced economic growth and employment. The US housing market has been showing these signs for more than five consecutive quarters through third quarter 2021, they found. Silver liningsA lot was learned from the last housing crash, which has led to better early detection and warning indicators of housing bubbles, the researchers wrote.

Source: CNN April 01, 2022 01:18 UTC