“Since 1999 year-end through 2015 home prices have risen 76% while household mean real income has grown less than 2%; the millennium-to-date gap between the two growth rates peaked at 84% during 2005-2006 and has risen back to 74% as of 2015 year-end.
As much as I’m bearish on local Real Estate we have a global asset pricing issue. With interest rates at the bottom for this many years investors and savers have had to find alternatives to make money. That’s taken money out of the safety of bonds into riskier assets like stocks and real estate. When you have such a large pool of investors looking for a method to make money you get bubbles. Bubble never end well.