OUT OF MIND
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Latest topics
» 'Dark Data' Is Leaving a Huge Carbon Footprint, And We Have to Do Something About It
Why Home Prices Haven’t Crashed Yet EmptyYesterday at 10:13 am by PurpleSkyz

» In hurricane chaos, Florida’s Ron DeSantis emerges a leader
Why Home Prices Haven’t Crashed Yet EmptyYesterday at 10:09 am by PurpleSkyz

» New Filter For Drinking Water Can Capture Pollutants And Microplastics To Make It More Potable
Why Home Prices Haven’t Crashed Yet EmptyYesterday at 10:04 am by PurpleSkyz

» Bus driver in Turkey dies from cardiac arrest aka SADS (sudden arrhythmic death syndrome)
Why Home Prices Haven’t Crashed Yet EmptyYesterday at 9:56 am by PurpleSkyz

» FDA Withholding Autopsy Results On People Who Died After Getting COVID-19 Vaccines
Why Home Prices Haven’t Crashed Yet EmptyYesterday at 9:53 am by PurpleSkyz

» After U.S. Soldiers Were Told to Go On Food Stamps, Congress Finds Another $12 Billion for Ukraine
Why Home Prices Haven’t Crashed Yet EmptyYesterday at 9:49 am by PurpleSkyz

» Tracked and Traced: The Rise of the Digital Beast
Why Home Prices Haven’t Crashed Yet EmptyYesterday at 9:43 am by PurpleSkyz

» ‘The Pfizer Effect’
Why Home Prices Haven’t Crashed Yet EmptyYesterday at 9:37 am by PurpleSkyz

» Metrolink and Amtrak Suspend Service Between LA and San Diego Indefinitely Due to the Ground Shifting
Why Home Prices Haven’t Crashed Yet EmptyYesterday at 9:33 am by PurpleSkyz

» Australian News Discussing Biden’s Cognitive State
Why Home Prices Haven’t Crashed Yet EmptyYesterday at 9:26 am by PurpleSkyz

» The OpenVAERS Red Box Report
Why Home Prices Haven’t Crashed Yet EmptyYesterday at 9:12 am by PurpleSkyz

»  Thousands of People to Form Human Chain Around U.K. Parliament to Demand Freedom for Assange
Why Home Prices Haven’t Crashed Yet EmptySun Oct 02, 2022 12:37 pm by PurpleSkyz

» Digital concentration camp.
Why Home Prices Haven’t Crashed Yet EmptySun Oct 02, 2022 10:31 am by ANENRO

» Scientists use mosquitos to deliver experimental malaria vaccine
Why Home Prices Haven’t Crashed Yet EmptySun Oct 02, 2022 10:26 am by PurpleSkyz

» Scottish Government Orders Investigation Into Recent Spike in New Born Baby Deaths
Why Home Prices Haven’t Crashed Yet EmptySun Oct 02, 2022 10:04 am by PurpleSkyz

» Federal judge orders FBI to release contents of Seth Rich’s laptop
Why Home Prices Haven’t Crashed Yet EmptySun Oct 02, 2022 9:50 am by PurpleSkyz

» The Insanity That Grips Washington
Why Home Prices Haven’t Crashed Yet EmptySun Oct 02, 2022 9:46 am by PurpleSkyz

» Thirty Former FBI Agents Stand Up For Whistleblower Who Exposed The FBI For Targeting Conservatives
Why Home Prices Haven’t Crashed Yet EmptySun Oct 02, 2022 9:42 am by PurpleSkyz

» Canada Has A Food Affordability Problem
Why Home Prices Haven’t Crashed Yet EmptySun Oct 02, 2022 9:40 am by PurpleSkyz

» Musk unveils new $20K humanoid robot
Why Home Prices Haven’t Crashed Yet EmptySun Oct 02, 2022 9:38 am by PurpleSkyz

» A Big “We Told You So” Moment: Spain Admits to Chemtrail …
Why Home Prices Haven’t Crashed Yet EmptySun Oct 02, 2022 9:35 am by PurpleSkyz

» ‘Borgs Of War’, Human Cyborgs Are Just The Beginning – By Dr. Robert W. Malone
Why Home Prices Haven’t Crashed Yet EmptySun Oct 02, 2022 9:27 am by PurpleSkyz

You are not connected. Please login or register

OUT OF MIND » THE INSANITY OF REALITY » GOVERNMENTS & THE NEW WORLD ORDER » Why Home Prices Haven’t Crashed Yet

Why Home Prices Haven’t Crashed Yet

Go down  Message [Page 1 of 1]

1Why Home Prices Haven’t Crashed Yet Empty Why Home Prices Haven’t Crashed Yet Mon Aug 22, 2022 9:39 am

PurpleSkyz

PurpleSkyz
Admin

DAS KAPITAL: Why Home Prices Haven’t Crashed Yet – By Eric Basmajian 

SM

Source – epbmacroresearch.com
  • “…Real home prices are going to fall, and it’s going to cause a massive negative wealth effect. Real home prices are much more impactful for the wealth effect compared to nominal home prices. Many people invest in real estate as an asset to beat inflation. If inflation is 10% and your home goes up 15%, you beat inflation by 5%, and thus, you are 5% wealthier in real terms. If inflation is 10% and your home goes up 5%, you lost 5% of your purchasing power in an asset that is supposed to give you protection, and you are actually worse off”


Why Home Prices Haven’t Crashed Yet – By Eric Basmajian



Real home prices are going to fall, and it’s going to cause a massive negative wealth effect. Real home prices are much more impactful for the wealth effect compared to nominal home prices. Many people invest in real estate as an asset to beat inflation. If inflation is 10% and your home goes up 15%, you beat inflation by 5%, and thus, you are 5% wealthier in real terms. If inflation is 10% and your home goes up 5%, you lost 5% of your purchasing power in an asset that is supposed to give you protection, and you are actually worse off.
Also, real home prices are the best measure of the true performance of real estate as an asset class across long periods of time. You can’t compare home prices today to those in the 1970s without looking at them in real or inflation-adjusted terms.
This chart shows real home prices since the 1970s, and you can see that real home prices have declined several times, mainly around the recessionary periods

Why Home Prices Haven’t Crashed Yet Image-65

The 2000s recession was an outlier in which home prices rose in real terms.
The financial crisis in 2008 caused home prices to decline by almost 30% in real terms. It took until 2021 to regain the peak in real home prices in 2006, 15 years!
Over the last ten years, real home price growth averaged 4.5%, which is way higher than the 20-year average of 2%.
Consumers and investors became accustomed to home prices rising sharply above the rate of inflation and a source of wealth building, particularly when using high amounts of leverage and mortgage debt.
With the feeling that home prices would always rise above inflation and nearly 5% above inflation, a prevailing sentiment was born that you could leverage your way to wealth. But now, real home prices are starting to decline.

Why Home Prices Haven’t Crashed Yet _O4aUy-E

One month is certainly not a trend, but this is where the EPB process becomes very powerful and why studying leading indicators is critical when determining what noise is and what’s the start of a new trend.
There are several key leading indicators of real home prices, but this video covers just three: the months’ supply of new homes, the spread between 30YR mortgage rates and 30YR Treasury rates, and the growth rate of real M2. All three indicators imply the rate of real home price appreciation is likely to decline in the months ahead.

Why Home Prices Haven’t Crashed Yet 205VsmFR


https://youtu.be/HfsHhOvR8vY

https://rielpolitik.com/2022/08/21/das-kapital-why-home-prices-havent-crashed-yet-by-eric-basmajian/

Thanks to: https://rielpolitik.com



  

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum