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Signs of a housing bubble are brewing

Posted in finance, habitats

US home prices have soared to new heights and they keep on climbing, and some researchers and economists say they have seen signs of a housing bubble brewing.

Home prices are rising faster than market forces would indicate they should and are becoming “unhinged from fundamentals,” according to a new blog post written by researchers and economists at the Federal Reserve Bank of Dallas.

Until recently, the possibility of a bubble wasn’t widely supported. But after looking at housing markets across the US, the Fed researchers said new evidence is emerging.