re: Drudge linked, Economist on housing bubble: We never left the bubble, its bubble inception

quote:

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People are overvaluing and overpaying for homes. I look at a lot of these prices and wonder how so many can afford such high prices.

In short, they can't. Something has to give.

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Over-valuing? Um... maybe a little. Maybe. People buying more than they should? Maybe that, too.

A good part of the problem is not the home builder. It's the tax assessors raising values of land and homes to get that tax money up, up, up.