Wall Street Thinks U.S. Homes are Overpriced
The wall street journal published a piece suggesting home prices are overprice and will likely fall. They highlight the difference between the average home cost and the average home value suggested by the price of large institutional companies such as American Homes 4 Rent and Invitation Homes Inc.
I suspect this is nonsense (especially as according to google their price to book ratio is positive). That is I think it is more aligned with the fact that above average (in price) houses don't make good rentals--so these folks primary hold houses which are below the average price in the areas they operate.
What do y'all think?
Wall Street Thinks U.S. Homes Are Overpriced
https://www.wsj.com/real-estate/wall-street-thinks-u-s-homes...