The Economic Sign of Housing Flips

This might be sign #367 that the next economic apocalypse is forthcoming, but homes that are bought and sold within a 12-month period are on the rise. Back in 2006, according to Trulia, home flips accounted for 7.3% of sales. Now, they account for 6.1%, the highest level since. More disconcerting is the metro patterns are similar with Las Vegas, Florida and Central California leading the way.  11 of these metro areas hit 17-year highs.

 

The story of speculation on top of an asset bubble never ends well. Here are two charts from Bloomberg that make us nervous:

 

Housing Speculation

 

Housing Speculation