Dean Baker
Dean Baker
Dean Bakeris an American macroeconomist and co-founder of the Center for Economic and Policy Research, with Mark Weisbrot. He has been a senior economist at the Economic Policy Institute and an assistant professor of economics at Bucknell University. He has a Ph.D. in economics from the University of Michigan...
home prices run
There has never been a run up in home prices like this.
best creation gives growth home jobs level million next optimistic percent prices scenario year
The optimistic scenario gives you about 2 million jobs next year -- about 180,000 a month. If I had to make my best bet, I'd say we'll have level home prices and growth of about 1.5 percent for the year. There'll be job creation of about 80,000 or 90,000 a month.
housing leading leaving money mortgage predict prices rule secondary surprise
I wouldn't necessarily predict this would be a trigger, but I wouldn't rule it out either. It wouldn't surprise me if you see money leaving the secondary mortgage market, leading housing prices to fall.
california economic home prices ripple suffered trouble
Hawaii's home prices suffered in the 1990s because of economic trouble in Japan, ... If home prices in California reverse, it will have ripple effects.
moved prices rent sale
Historically, rent prices and sale prices have moved together.
building home pace prices pushing showing until
We're building at a 2 million-a-year pace, which is more than demand, and we're going to keep building at that pace until home prices correct, ... It's already showing up in the rental market, oversupply is pushing down rental prices.
home landlords position prices raise rates together
Home and rental prices will come back together by home prices falling. I don't think landlords will be in any position to raise rates too much.
exotic forcing home loans people prices room turn unorthodox
Home prices are going through the roof, forcing people to turn to exotic loans and unorthodox financing. These people have no room for error.
continue expectation pay people prices willing
People are willing to pay them because there is an expectation that prices will continue to rise. Once people don't have that expectation, things will change.
bubble bubbles decline home housing local looking maybe normally percent prices realistic specific talk talking
Normally when you talk about housing bubbles bursting, you're talking about a specific local market. But we've never had a nationwide run-up in home prices like this. I don't think it's realistic to think the decline won't also be national. I think a 15 percent nationwide decline is very plausible. In many bubble areas, could be looking at 20-25, maybe 30 percent declines.
growth home knock level percentage prices
If home prices level off, that can knock down growth by 1 or 2 percentage points, from 3.5 percent to 1.5 percent.
few gamble people problem recognize
The problem is that few people recognize it for the gamble that it is.
builders building clearly developing downward glut markets pressure
Builders will keep building as long as they can keep getting these prices. But I think there's a glut developing clearly in some markets and that clearly will put downward pressure on prices.
air bubble imagine rates
Let's imagine rates go to 7 percent, I think that would take the air out of the bubble pretty quickly,