Recently, a noted economist was discussing the real estate market. Below is a summary of some of his conclusions.
- Incline Village housing market has turned the corner.
- Low production, low inventories suggest change in housing stock demand will overwhelm new flow supply.
- Historical relationship between underlying trends in Incline Village house price appreciation and (lagged) Incline Village days on market suggests that housing cycle is solidly in appreciation phase.
- Markets with more severe housing downturns rebounding more sharply; ditto Reno and Incline Village housing markets.
- Longer-term appreciation trends suggest that neither the so-called “Sub-Prime Bubble” nor the prior “Japan Bubble” are anomalies: valuation cycles are normal for markets with geographic and regulatory restrictions on supply side of market (ask the Sierra Club).
- Role for demand-side bubbliciousness is not ruled out (viz. Phoenix and Las Vegas with subprime lending) but supply-side constraints assure Incline Village of another period of rapid house price appreciation.
Have a wonderful week!
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