Washington & Wall Street: Bernanke's Housing Bubble is Unsustainable

The rally in the US housing market is largely an illusion. If you take sales of distressed properties out of the Case Shiller data, for example, average home prices are up about 5% over the past year. And much of the upward move in home prices is due to short supply rather than a groundswell of real consumer demand for homes.

Almost half of all home owners with mortgages owe more than their properties are worth or had less than 20 percent equity in the first quarter, according to Zillow. Those people probably are locked in to their residences. Listing a house and purchasing a new one generally requires equity of at least 20 percent to meet costs, Zillow said.

http://www.breitbart.com/Big-Govern...?utm_source=BreitbartNews&utm_medium=facebook