BUBBLE TROUBLE IN THE US REAL ESTATE MARKET?

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BUBBLE TROUBLE IN THE US REAL ESTATE MARKET?
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BUBBLESARE FOR BATHTUBS. HOW ABOUT SOME FACTS?
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FACT Media is not your friend!

• MEDIA IS NOT A GOOD WILL INFORMATION
  ENTERPRISETHEY ARE A BUSINESS
• SPREADING FEAR GETS VIEWERSAND MAKES THEM MONEY
• HOUSING BUBBLE FEAR!

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FACT Housing is not tied to rates

• Historically, rates have been much higher, during
  very vibrant housing markets
• If rates increase .50, average after-tax house
  payment goes up by 8 per week
• Would 8/per week raise change your life? NO.

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FACT Not like stock market

• Last decade, stocks up 150, homes up 100.
  Growth does not mean bubble!
• If you sell a stock, do you HAVE to buy another?
  NO.
• But if you sell your home, where will you live?
• Rent? Not likely

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FACT Watch Housing Inventory

• More homes on market than 50 years agobut more
  population and homes in general than 50 years ago
• PACE of sales is key
• Present pace around 5 months turn time for
  inventory
• Watch Existing Home Sales Report

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FACT Look at Job Market

• Healthy job market healthy housing market
• Unemployment in US presently around 5.0...very
  healthy
• Watch local job market to gauge health of local
  housing market

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BOTTOM LINE
Localized frothy markets? Maybe. Keep eyes
open? Always. But dont let the media scare
youwatch the right factors! Bubble
popping.unlikely!