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Summary
Hello and welcome to edition 26 of the Boom Bust Bulletin. What a year it has been! I’ve had so many questions this year about whether the 18-year cycle remains on track, what with high inflation, high interest rates, energy and food supply problems and the war in Ukraine. Therefore, it is an opportune time to review the state of the US real estate markets. Why? Because the US leads the w…
Key Claims
- 6 © Property Share Market Economics Source – World Property Journal According to the National Association of Realtors’ latest quarterly housing report, an overwhelming majority of U.S. metro markets saw home price gains in the third quarter of 2022 despite mortgage rates that approached 7% and declining sales. Forty-six percent of the 185 tracked metro areas registered double-digit price increases, down from 80% in the second quarter of this year. Source – World Property Journal — confidence: medium
- 18 © Property Share Market Economics Clearly things aren’t linear in this space, and we can certainly expect volatility as central banks fight through the myriad of issues that affect our daily lives. But when viewed through the lens of the real estate cycle, the most important driver of them all remains. The land market must be supported at all costs. And with this edition we say goodbye to 2022. Roll on 2023! Best wishes, Darren J. Wilson And your Property Sharemarket Economics team. — confidence: high
Notable Quotes
“So, what’s happening in the US is key to understanding how the cycle is progressing.”
“Remember, you can always contact me via my email address darren@ propertysharemarketeconomics.com with your questions, queries, and feedback.”
“But context is critical: 30-year fixed mortgages back in 2003 averaged around 5.66%.”
“Because these areas are critical components of a healthy economy.”