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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: CalculatedRisk who wrote (21811)1/20/2005 11:09:45 AM
From: John Vosilla   of 116555
 
<Housing price busts on average occurred about once every 20 years, lasted about 4 years, and involved price declines of about 30 percent. While only about one-fourth of equity price booms were followed by busts, about 40 percent of housing price booms ended in busts. Both types of busts were highly synchronized across countries.>

A big part of the continuing rise in average home prices has been the sharp rise in the average size of a home over the years. We have probably reached a peak in that as well. No doubt the areas priced too high relative to wages and equivalent rents as well as property types with the biggest amount of new supply and speculative activity will have the biggest collapse.
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