THE NEW
GOLD RUSH
HUFFINGTON
07.21.13
COURTESY OF TARA BURKS
to a still-sizable proportion of underwater homeowners who do not
want to sell at a loss, combined
with the fact that very little new
housing has been built in recent
years. Meanwhile, places like Atlanta and Phoenix have continued
to see population growth.
On top of that, said Michael
Orr, director of Arizona State’s
real estate center, “people are
buying homes like stocks.”
“My advice is to stick to it and
be patient,” he said.
A NEW BUBBLE?
While new buyers bemoan the challenges of a revived market, the lift
in home prices after years of uncertainty and panic comes as a huge
relief to the 10 million or so borrowers who remain underwater,
meaning they owe more on their
mortgage than their home is worth.
The long-dormant home building industry, which was devastated by the crash, is up and running
again, offering a potential boost
to employment in states suffering
from economic stagnation. Realtors who survived the dark years
are positively giddy.
For now, home prices in most
areas remain below historic highs,
meaning homes can be had at rela-
“I was under the
impression that
houses were
plentiful. I thought
the hard part would
be getting approved
for a mortgage.”
tive bargains. Most housing market
experts describe current trends as
a positive — even the rapid price
increase of the past year.
Orr described what is happening right now in Phoenix as “a
fast bounce.”
“If prices can go down fast, they
should be allowed to go up fast as
well,” he said.
Yet in a nation still contend-
Tara Burks,
who’s been
looking to
purchase
a house in
Atlanta, has
lost several
bidding wars
to investors
paying cash.