Low Construction Rate Is Keeping Market From a Bubble

Home prices continue to rise, but according to economist and Forbes contributor Bill Conerly, we are not in a bubble, yet.

“The key reason I think not is that construction has hardly increased,” Conerly writes. Single-family housing starts year-to-date average 667,000 units, 60 percent less than 2006’s high water mark.

“All told, we are not in a bubble. That does not mean that pricing is right; it could well be a little too high in some areas,” Conerly adds.

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