Don’t tell me you didn’t know that this is National Froth Day.
This is the fifth annual celebration of the exciting event for all of those who follow real estate.
It was on this day, five years ago, when then-Fed boss Alan Greenspan — and then-reigning “Maestro” of the economy — went to Congress and said he saw “froth” in the housing market, but not a bubble:
” … there can be little doubt that exceptionally low interest rates on ten-year Treasury notes, and hence on home mortgages, have been a major factor in the recent surge of homebuilding and home turnover, and especially in the steep climb in home prices,” his prepared testimony went. “Although a ‘bubble’ in home prices for the nation as a whole does not appear likely, there do appear to be, at a minimum, signs of froth in some local markets where home prices seem to have risen to unsustainable levels.”
Happy Froth Day to one and all!
A trip down memory lane: Greenspan June 9, 2005.
Source: Lasner on real estate