Friday , 23 April 2021

Tag Archives: house prices

Your House: A Home, An Investment or a Ponzi Scheme? (+4K Views)

In the past few decades, the concept of home ownership has been completely turned on its head. Previously, homes were considered a very long-term consumption good...[No one] ever considered tripling the value of their homes by retirement time and selling them to move beachside yet, somehow along the way, this became a reasonable investment expectation. Even today, home buyers still make their purchases with the hopes of escalating prices. [It begs answers to these questions: Is a house just a home? Should a house be expected to behave like an investment? Is the housing game nothing more than a Ponzi scheme where the end buyer before the market corrects becomes the "greater fool"? Let's try and answer those questions.] Words: 935

Read More »

This Hard Data Clearly Says: Real Estate is in Recovery Mode!

Auto sales, consumer confidence, manufacturing, retail sales, exports - you name it - over the last six months, nearly every facet of the U.S. economy has shown improvement and the real estate market is no exception. [Here are 11 irrefutable signs that such is the case.] Words: 800

Read More »

U.S. House Prices Have MUCH Further To Fall! Here’s Why (+2K Views)

There has been a deluge of articles recently about the upticks in the housing data...[yet, while] I do not dispute the improvement in the data regarding home starts, permits, pending sales, etc.,... [see graph below] these data points are still mired at very depressed levels so the assumption is that if home building is stabilizing then it is only a function of time until home prices began to rise as well. Right? Not so fast.. [Let me explain.] Words: 1100

Read More »

Believe it or Not: Australia’s Housing Bubble is Worse Than That in the U.S.

The explosion of Australia’s mortgage debt is viewed by many economists and commentators as the key factor behind Australia’s unaffordable housing [and the primary] reason why Australia’s housing bubble is larger than that experienced in the United States in the mid-2000s. [Another factor is] the strangulation of fringe urban land supply via increasingly restrictive planning processes. [Let me substantiate that contention by comparing the two countries housing situation via a number of descriptive graphs. Words: 817

Read More »