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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: ggersh who wrote (125433)	11/29/2016 1:20:36 PM
From: John Pitera	Read Replies (1) \| Respond to of 217544

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

To: ggersh who wrote (125433)	11/30/2016 7:33:41 AM
From: bart13	Read Replies (2) \| Respond to of 217544

Almost exactly ten years after the last housing bubble burst, unleashing a dramatic crash in US real estate prices today Case Shiller reported that as of September, its Index covering all nine U.S. census divisions, surpassed the peak set in July 2006 as the housing boom topped out, and in doing so the average home price has now climbed back above the record reached more than a decade ago. While true, the "back above the record reached more than a decade ago" prices don't include a correction for inflation. When using the bogus BLS CPI as a correction, we're still 16% below the record high.