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This is Anthony Sanders George Mason University professor of real estate -- and these -- the question day because.
These new and existing home sales continued to show improvement but it's just look at the -- raising some real concern right Anthony.
Well there are some big concerns when -- you show that graphic of the house prices out west Phoenix.
California are all up over 20% back -- point 6%.
The FHA -- numbers came out this morning and nationally it's fifteen point 6%.
Growth of Daniel was the monthly numbers.
So then what do it.
Let me let you finish -- I think you're gonna go which is my next follow up question is what's driving these markets so much higher than the national average.
What's driving this market so much higher than the national average is.
Uncle Ben Ben Bernanke at the Fed.
Because if you take a look at mortgage purchase applications which came out yesterday are still have been fairly flat since 2010.
So it's not consumers jumping in with mortgages -- investors.
Investors taking advantage of cheap money from the -- So how this all.
-- out if you -- my English co host today that no that's set in English who pays how little sort out I know that we in our -- used the phrase.
Bubble DC another housing bubble bursting particularly in those markets that are rising so fast -- I do because that because that housing prices are rising so fast and they're disconnected from economic reality.
The underlying economy's not growing that fast unemployment is still dangerously high as chairman Bernanke said yesterday.
And we just that we don't see any applications but on mortgages coming in so this this is a disconnect.
Okay -- have that.
So prices are going up in those markets faster than the broader economy but what's the likelihood that when housing bubble first verse 56 years ago.
Prices fell too far too fast and this is just part of a correction face.
-- That would be very nice interpretation.
I -- out wide as ever ever -- what did you I don't think it's right.
The problem is -- chairman Bernanke yesterday along with the that -- Federal Reserve present -- Came -- -- both we're talking about using credit to consumers I'm going oh my gosh we have -- inventories.
Investors already pumping air into the real estate market what happens if we -- -- credit again we can end up with a well.
Housing bubble from -- -- Right so when -- you like -- can't raise interest rates we just heard from Bernanke -- markets went banana is down up all over the place and concern that.
You know bin -- was -- and stop this did it take a foot off the pedal here.
And we know that the one sector we keep saying is over and over that's really benefited from -- -- -- monetary policy is housing C can't raise interest rates really quite yet.
Well that's true -- in -- you look at there's an open house price index -- you look at house prices case Shiller FNC.
-- from any of them and plotted against the Federal Reserve's monetary policy -- knows they both collapsed together and both been stagnant together.
Housing is -- finally starting to rise which means.
There when did this in 2008.
And so it's finally starting to really kick him questions coming in control of the stock.
-- -- -- the 64000 dollar question but GAAP.
Consumer goes from here -- expecting to get -- Sanders professor real estate finance -- George Mason University think you look at explored this.
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