Housing bubble or not? Signs here not clear — yet
Jon Talton called our previous ‘bubble and crash.’ Does he see the same thing today?
Reporting in the Seattle Times, Talton notes that Seattle home prices have risen a startling 74% percent in the past five years. As of June, the median price of a single-family house was a record $666,500.
An uninhabitable dump in West Seattle commanded a handsome $427,000 after a bidding war.
Nor is the boom confined to the most desirable parts of Seattle and Eastside. Median prices shot up 36% last year in Burien/Normandy Park and 28% in a section of Renton.
Seattle ranked 10th among 402 metros in price growth in May. Among major metros, it was second only to Portland.
Washington topped all states in price growth for three months as compared with a year earlier before falling to second place behind Oregon in May.
So is Talton ready to call it a bubble?
Missing are: “Large numbers of speculators betting on continued high price appreciation, and many of them overextended.”