housing

Housing Indicator Weakest Since 2009

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The Economic Cycle Institute, which has been predicting a slowdown in the American economy since late 2017, released their home price leading index which shows similar bearishness. The housing market is the weakest part of the economy. Since American’s primary home is often their largest asset, a decline in prices…CONTINUE READING

Millennials Have Less Assets Than The Prior Generation

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Many consumer confidence surveys depend on how people feel about their own lives since it’s what they know best. If they are asked about the economy, their answer probably tells us about their job prospects more than anything. Confidence is really high before recessions because that’s when the labor market…CONTINUE READING

Housing Market Declines First Time Since 2011

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The most curious part of the economy is that while GDP grew 4.3% in Q2 and consumer sentiment is near a record high, the housing market has weakened. We will delve into the weakness in this article. To be clear, you should try to avoid recency bias in which you…CONTINUE READING

Household Wealth & Real Estate

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One of the most heated debates on whether the bull market has run its course is about household wealth. The bearish investors claim that since household wealth as a percentage of GDP is at a record, the cycle must end, while the bullish investors disagree because there is no specific…CONTINUE READING

Is Real Fed Funds Rate Peaking?

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Q2 GDP growth was revised higher from 4.1% to 4.2% even though the estimate for real consumption growth was revised lower from 4% to 3.8%. That being said, the consumer had a strong rebound from Q1 and still drove GDP growth to an amazing result. The obvious question is whether…CONTINUE READING

US Housing Is Becoming Unaffordable

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We’ve discussed the price to income ratio of housing in a previous article. This gave us an idea of how expensive housing has become. We’ll discuss some of best points why real estate is too expensive and then provide the counterpoint explaining why housing isn’t in a bubble. Housing Isn’t…CONTINUE READING

Buying/Renting Home vs Investing In Stocks

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The conventional wisdom during the baby boom generation was that buying a house was a ticket to financial freedom. Because policy makers believed in this concept, since the late 90s there was an aggressive attempt to get people into homes they couldn’t afford. Obviously, over leveraging yourself with the purchase…CONTINUE READING

Housing: There’s Good News & Bad News

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For your reference, we’ve discussed housing in previous articles: What Comes Next For Housing Prices/Rent? The New Trend In Housing The Future of US Housing Market Is US Housing In A Bubble, Again? As mentioned previously, the United States has been experiencing a decline in the homeownership rate. It’s important to…CONTINUE READING

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