Performance Enhancement = Juiced-up . . . Housing Prices are on a Tear

Housing on a Sugar High? In an April 8, 2013 MSN video interview with former Fannie Mae Chief Credit Officer, Ed Pinto, Mr. Pinto explains the fundamentals of the housing market and how the "wealth effect" fueled by artificially low interest rates and abundant borrowed money, rather than increasing incomes, is effecting housing prices (and other asset prices). 

Housing Market Accelerates: Home Prices Jump 9.3% in Quickest Rise Since 2006; Gains Seen Across Country By Nick Timiraos Wall Street Journal 4/30/2013, at: http://online.wsj.com/article_email/SB10001424127887323528404578454612657511232-lMyQjAxMTAzMDAwMTEwNDEyWj.html?mod=wsj_valettop_email

Home Prices Growing At Pre-Bubble Rates On Bernanke Boost, But Big Shadow Inventory Lurks By Agustino Fontevecchia - pub. Forbes.com 4/30/2013, at: http://www.forbes.com/sites/afontevecchia/2013/04/30/home-prices-growing-at-pre-bubble-rates-on-bernanke-boost-but-big-shadow-inventory-lurks/

Peter Schiff and The Coming Housing Collapse: The Fed, Instead Of Lehman, Owns The Mortgage Market By Agustino Fontevecchia - pub. Forbes.com - 3/5/2013, at: http://www.forbes.com/sites/afontevecchia/2013/03/05/peter-schiff-and-the-coming-housing-collapse-the-fed-instead-of-lehman-owns-the-mortgage-market/

In a February 12, 2012 video interview, Warren Buffett, “The Oracle of Omaha” comments on The Institutional Home Buying Bubble, ‘bulk’ single family home property management, record low interest rates, home price values and risks, and suggests that buying a home is a good way to “short-the-dollar”.

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[Note: The small red cross, above 2012 on the horizontal axis on the graph below is approximately February of 2012, the time that Warren Buffett made his comments in the above linked interview.] 

The Institutional Home Buying Bubble at: http://billsplace.posthaven.com/the-institutional-home-buying-bubble