JPM's Jesse Edgerton said about.............>

US VIEW: JPM's Jesse Edgerton said about "assessing housing correction risk

across US counties" that US "house prices have risen robustly in the last five

years, but the geography of prices differs from before the crisis. High prices

are less correlated with mortgage debt and more concentrated in

supply-constrained areas."

- He said that "a few places like Denver, Seattle, DC, Portland, and Boston have

high prices despite expanding supply. But, overall, the risk of a housing

correction looks low in most places."

- He said that "as we documented in our work on recession risk, it has been

unusual for economic expansions to last more than a few years after the economy

reaches full employment, which we now believe it has. We thus think it makes

sense to be on the lookout for early signs of imbalances whose reversal

eventually could trigger the next recession. With the events of 2007-2009 still

fresh in our minds and nominal housing prices now exceeding their 2006 peaks,

the housing market is an obvious place to look for signs of overheating."