Just a few years ago, U.S. housing markets in aggregate were overbuilt, and that was reflected in declining rents, home prices and home sales. What has happened in the interim has been a quicker than anticipated absorption of surplus property, and when viewed in today’s… Read more

(written on September 12/2012) A paltry 96,000 jobs were added in August 2012, while at the same time there are an estimated 120,000 to 140,000 net new additional people entering the workforce – and that happens every month. So in reality, unemployment got worse. But… Read more

One of the definitions of the word phoenix is a renewal after a calamity, and that is so appropriate for the real estate markets and economy of Phoenix, Arizona. I had the opportunity to again make the annual journey and speak in Phoenix this week… Read more

Housing should not be viewed from a short-term perspective given transaction costs. Nor should home values be analyzed in a vacuum since you must live someplace. And since housing is truly a long-term asset, inflation comes into play. That said, take a look at what… Read more

If you looked at the basic U.S. Gross Domestic Product (GDP) numbers, you would conclude that the U.S. is gaining economic ground.  [Note: GDP is the total market value of all recognized goods and services produced by a country or state.  Typically not in the… Read more

If Indeed "History May Not Repeat Itself But It Certainly Does Rhyme," by Mark Twain, is true, why would anyone today buy a 10-Year U.S. Treasury Yielding 1.92 percent today? The U.S. is poised to run a deficit in the 2011 fiscal year (which ended… Read more

That Results in a Forecast 30-Year Residential Rate of 6.43 Percent The Federal Reserve Bank System has two charges – to enable full employment and to control inflation.  One of their tools to accomplish these is the Federal Funds Rate.  The Fed Funds Rate is… Read more

I would speculate that if you asked the typical American what the best long term investment is, many (if not at least half) would probably say “Gold.”  But the real long-term returns of gold might surprise you. If you bought gold in January 1980, as… Read more

As the Federal Reserve commences a second round of quantitative easing (QEII), economists continue to debate whether or not the effect will be inflationary. There’s no need for further debate as far as the market is concerned, however, as interest rates are popping up significantly,… Read more

Economists Forecasting Home Prices to Rise 12 Percent in the Next Five Years (But In My Opinion, That Would Not Even Cover Inflation)   Wall Street Journal Article Economists in this survey are forecasting a 12 percent price recovery in the next five years.  If that is… Read more