[rpedela]

I am beginning to think there is another housing bubble, but this time I am not exactly sure how it would play out if it burst assuming there is one forming. Would it affect the Chinese economy? The economy in each US city? The larger US economy? The global economy?

[refurb]

Google the Case-Shiller home index. Average prices in the US are as high as they were during the 2007 bubble.

[MagnumOpus]

Not quite correct. The CS20 home price index is...

- 7% lower than the 2006 peak in nominal terms.

- 22.6% lower than the 2006 peak in inflation-adjusted terms (adjusted by the BLS's US CPI-urban NSA)

- 27.3% lower than the 2006 peak as a percentage of wages (adjusted by the BLS's average hourly earnings paid to private-sector employees)

Together with massively lower mortgage rates (3.9% rather than 6.2% for a 30yr fix), the situation is nowhere near as bubblicious as 2006. We are maybe around 2003 levels - easily sustainable.