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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (18481)

11/29/2016 1:21:18 PM

From: John Pitera

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Respond to of 33421

To: ggersh who wrote (125434)	11/29/2016 1:20:36 PM
From: John P	of 125435

Hi ggersh, The past several weeks of the WSJ weekend Mansion section which posts info on very high end properties and multi million dollar places owned by known personalities such as Julia Roberts has been replete with articles of 12 to $30 million plus properties that have been sold after have witnessed 30% to 40% price reductions prior to the property selling.. as well as places selling for 60% of their 2013 sales price.....Now this is ultra high end properties. I personally believe that the Case shiller numbers showing a new high above hte 2006 level is a bell ringing that we are (speaking in terms of a 5 to 10 year time frame) at a top in real estate.... A further 75 to 200 basis point increase in rates will (if it occurs) manifest itself in higher borrowing and carrying costs for real estate and act to curb prices. What will be fascinating is what the Republicans do regarding the Debt ceiling, the yearly budget deficit and the cumulative US debt,,, especially as refinancing maturing US debt costs more to issue. Barron's magazine has been quite vocal that the US should be issuing 100 year US bonds to lock in these historically low borrowing costs. Many governments from Japan, to France and other countries have been issuing longer and longer maturities on their government debt. Always interesting times, John