• 656 days Will The ECB Continue To Hike Rates?
  • 656 days Forbes: Aramco Remains Largest Company In The Middle East
  • 658 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,058 days Could Crypto Overtake Traditional Investment?
  • 1,063 days Americans Still Quitting Jobs At Record Pace
  • 1,065 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,068 days Is The Dollar Too Strong?
  • 1,068 days Big Tech Disappoints Investors on Earnings Calls
  • 1,069 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,071 days China Is Quietly Trying To Distance Itself From Russia
  • 1,071 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,075 days Crypto Investors Won Big In 2021
  • 1,075 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,076 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,078 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,079 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,082 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,083 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,083 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,085 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Real Estate: May 2017

Our last special comment on US real estate was published in August 2006, just a month after the actual peak in prices. Although not mentioned, the timing was prompted by a rare signal from our Peak Momentum Forecaster. It got over 1.20 signaling that whatever the big speculation was focused on was peaking.

The hottest phenomenon that fateful summer was residential real estate.

By anecdote and price, North American residential real estate has again become highly speculative. This time around, our "Forecaster" is not giving a signal, but the play has become very frothy. As global credit markets reverse to adversity after mid-year, the mania will begin to fail.

The link to the 2006 special study follows:

http://www.institutionaladvisors.com/uploads/9/7/9/5/9795010/bob-hoye-consequence-of-real-estate-bubbles-aug-29-2006.pdf

"U.S. Housing: Going From Good to Great"

- Seeking Alpha, May 8.

"Asian Investors Bullish On US Property"

- Bangkok Post, May 9.

"The housing market is on fire, as sales surge and prices keep rising."

- Wall Street Journal, May 15.

"It'll cost you $2.5 million to live in this mobile home in a trailer park in California."

- Money-ish.com, May 16.

 

Back to homepage

Leave a comment

Leave a comment