The massive real estate bubble that no one is talking about

http://www.dailykos.com/stories/2015/11/9/1447788/-The-massive-real-estate-bubble-that-no-one-is-talking-about

It seems bizarre that we can find ourselves in this position just seven years after the last enormous property bubble burst. It's even more bizarre that everyone is pretending it doesn't exist...again.

If I was to guess, this mass delusion stems from the fact that the bubble is being created by the deep-pocketed, cash-flush rich, and the people suffering from it are working poor.

Real-estate-data firm Black Knight Financial Services said that in August 21% of mortgages to buy homes–as opposed to refinances–went to borrowers with credit scores below 700. That was down from 24% in August 2014 and from 40% in August 2005.

1) Most bubbles are caused by the rich, not the poor.
2) A healthy housing market requires the working class to not be priced out of it.

It also shows the weak base underpinning today’s housing market. While the upper echelon of mortgage borrowers has piled into the market with home purchases and refinances at rock-bottom rates, borrowers with any sort of tarnish on their credit reports continue to be shut out or stay away.

First-time home buyers are just 30% of the single-family housing market, instead of the historic 40%. Home values have jumped 34 percent since reaching a bottom in early 2012. Home prices are increasing at 13 times the rate of wages. The Housing Affordability Index dropped 12% in just the first five months of 2015.

Looking at this housing bubble from a more comprehensive perspective, housing is vastly less affordable now than in 2007.

So why aren't people calling these homes massively overpriced like they are? Because the way people traditionally measure whether a home is overpriced is by how much you can rent it for, and rental prices are going nuts as well.