Tuesday, January 18, 2005

The Housing Bubble

In the Wall Street Journal Greg Ip wonders if the housing bubble will soon burst. It's about time. While the popping will not do me any financial good, I will derive an enormous psychological payoff from it.
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2 comments:

Anonymous said...

So Ip's article includes a statistic that home prices are up 36% since 1995 after adjusting for inflation. That's a compound annual growth rate of 4%. Definitely not bubbilicious. It actually sounds low given that one should expect returns to reflect a liquidity premium for investing in real estate.

12:43 PM
Bill said...

Geez, Jonathan, while you're enjoying a psychological payoff, I'll be trying to find some way to payoff the mortgage and HELOC on my $300K house that my town recently re-evaluated to almost $650K. Think leverage, young man, leverage....

11:53 PM

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