Fed Notes Extreme Exuberance in U.S. Housing

I may disregard some of the fundamental analysis the Federal Reserve uses, but the first of three indicators they are using to declare a housing bubble caught my attention.  Please note that this does not mean that housing is being declared at a pricing top today.  It cautions that a bubble is building to a point that a "pop" is the likely scenario that will resolve the current situation:

"Exuberance indicator"

Economists looked at a statistical model that tracks "exuberance," or when prices increase at an exponential rate that can't be justified by economic fundamentals. When their exuberance measure reaches a 95% threshold, that signals 95% confidence that the market is experiencing "abnormal explosive behavior," they noted.

The current exuberance measure: 115%.

Excerpt from Federal Reserve issues warning over "brewing U.S. housing bubble"

Dr. Cari Bourette is an analyst at ElliottWaveTrader.net, where she provides her proprietary market mood analysis in our flagship service, "Avi's Market Alerts."