Tuesday, February 2, 2010
That wasn’t a pop
"Adjusted for inflation, home prices are still 15-20% higher than they were in the mid-1990s. â€œThereâ€™s no plausible fundamental explanation for that,â€ he says. Why? Simple, he says: Economic fundamentals are all going in the other direction. Rental apartment vacancies are reaching record highs. Many segments of the housing market are still oversupplied. And the core demographic in the countryâ€”the baby boomersâ€”are reaching the age where theyâ€™re more likely to downsize, buying less house in the years to come."