6 Nov 2013
Fitch warns of possible US housing bubble
FXstreet.com (Barcelona) - In its latest Sustainable Home Price and Economic Risk Factor Report Fitch Ratings agency warned that prices of houses in several big US cities are getting dangerously close to bubble levels.
The majority of US cities where housing prices registered the steepest increases are located in the San Francisco Bay Area. According to Fitch's sustainable housing price model they are more than 20% overvalued.
“San Francisco and San Jose lead the pack, so the Fed's easy money policies may not be entirely to blame,” Jamie Coleman speculates on FXBeat. “Silicon Valley funny money is the more likely cause of the bubble.”
The majority of US cities where housing prices registered the steepest increases are located in the San Francisco Bay Area. According to Fitch's sustainable housing price model they are more than 20% overvalued.
“San Francisco and San Jose lead the pack, so the Fed's easy money policies may not be entirely to blame,” Jamie Coleman speculates on FXBeat. “Silicon Valley funny money is the more likely cause of the bubble.”