Summary
Hello and welcome to edition 34th of the Boom Bust Bulletin. We know from our real estate clock (and from using our powers of observation) that the global land boom is underway. In some places land prices are rising very rapidly indeed. People the world over are obsessed by house prices, over whether house prices are higher today than they were a month/quarter/year/ decade ago. Movements …
Key Claims
- 5 © Property Sharemarket Economics Source - FRED Above are two separate charts which show the price of stainless steel and steel wire. Much like concrete, both are an in-demand commodity. Completing the trifecta of commodities used for construction of homes there is lumber, which can be used for the roof frame and exterior finish. Source - FRED Thankfully, there has been a modicum of relief for lumber prices. However, they are still near decade highs. Source - FRED — confidence: medium
- 15 © Property Sharemarket Economics Source -DQYDJ If it does, then we should expect to see this movement of copper prices make their multi-year run higher the best via relevant stock charts. Source – Optuma Above is the daily chart for the Global X Management Global copper miners ETF (ASX – WIRE). A newer entry on the ASX in Australia. — confidence: medium
Notable Quotes
”• Some thoughts on the K-wave and conclusions Remember, you can always contact me via my email address darren@ propertysharemarketeconomics.com with your questions, queries, and feedback.”
“Because it demonstrates an important dynamic of the cycle, one which you’d do well to remember.”
“How has the cost of these key commodities today affected the number of homes being built today?”
“We will review the latest research on the most important commodities used by the building and construction industry and what they tell us about near- term supply and demand issues.”