Crash Course in Housing Crash History
Thursday, March 24
With the housing at all time high, many are wondering if we are due for a housing correction some time soon. At the same time, recent ~10% drop in SP500 and massive commodities jump, we might expect volatile times ahead in the markets overall. As we mentioned before, nobody can predict timing and...
Housing crisis as incomes do not catch up with home prices: Wen Crash?
Tuesday, March 15
Housing prices, like prices of anything else are driven by the overall supply and demand. The supply is driven by the available inventory while the demand has many input factors in it. Here we will try to see what may happen in the future of housing prices by comparing the historical relationship...
Housing Crash after Fed Rate Hike?
Saturday, March 05
After a period of low interest rates that fueled housing market, the Federal Reserve is meeting on March 14-15 with the stated goal to raise the benchmark interest rates from near zero. Many are saying that this will lead to softening in the real estate market, if not a price pullback. The reason...
Housing crash? Or will prices jump 3 times in next 15 years?
Saturday, February 26
Our generation of investors and home buyers have just come out of a major real estate crash in 2008 and we are very cautious due to the recency bias. The current economic and societal events in our eyes look unprecedented and hard to make sense of. Looking back in time usually provides a degree o...
Housing crash? Look at Money Supply in U.S. in the last 150 years
Monday, February 21
Real estate prices depend on great many things including inventory levels, savings rate, interest rate, property tax rate, new construction rate, population growth rate, job growth rate, etc. In a nutshell, it depends on supply of real estate and demand of real estate. This is what much of other ...