Don't Let House Lust Overrule Common Sense

A realtor, left, stands with potential home buyers while touring an open house in Redondo Beach, California. Photograph by0xA0Patrick T. Fallon/Bloomberg
Lock
This article is for subscribers only.

If you live on either coast, you've probably already seen this: the housing sales market is getting downright frothy. Here's a Bloomberg story about a $190 million listing (not a typo) for a home in Greenwich, Connecticut. That's froth. As Bloomberg News also reportedrecently, the frenzy has been sparked ``by the Federal Reserve’s drive to push down borrowing costs, a scarcity of listings and Wall Street’s new appetite for foreclosed homes.''

And today comes word that sales of previously owned U.S. homes rose in April to the highest level in more than three years.