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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