Home prices took a nose dive during the Great Recession that started in 2008. Prices fell in ALL local markets but much more in some than others. And afterwards some had a better recovery than others. Why? And, more important, could we have predicted that? Job growth is part of the story, but not a very useful one because nobody can predict which markets will have more jobs in the future.
- The income price has been a very successful forecasting tool for decades – not just in this recession.
- When markets are overpriced or underpriced, home prices ALWAYS return to the income price.
- Some investment strategies have a better chance for success in markets that are overpriced and under priced.
“The income price has been a very successful forecasting tool for decades — not just in this recession.”
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