Comments on "Housing Bubble or Rational Price Appreciation?".(letters to the editor)(Letter to the Editor)

Appraisal Journal, September, 2004 by Quinn, Heidi

The article entitled "Housing Bubble or Rational Price Appreciation?" by James W. Hughes, PhD, and Joseph J. Seneca, PhD,(Summer 2004) was a timely topic for professional real estate appraisers in the New York metropolitan market. In this article, the author correlates certain federal government actions such as accelerated depreciation schedules and the exemption of the first $500,0000 in capital gains to excesses in the real estate marketplace.

A useful addition would have been the analysis of the current effect of the regulatory changes whereby lending institutions are increasingly extending credit to borrowers considered "subprime." This matter was addressed recently by the Federal Reserve Board (May 21, 2004), which concluded that the benefits of subprime...

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