“Home Prices Are Out Of Hand Again”

“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. 

“Home Prices Are Out Of Hand Again”


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s