Tuesday, May 31, 2005


Don't Buy Housing Bubble Propaganda
My position is that housing is not in a bubble -- yet. But it is an increasingly extended asset class that may be subject to a significant correction in the future. But a 25%-35% retracement is a very different situation than a bubble (recall that the Nasdaq dropped 80%), primarily because there are very different consequences for both homeowners and investors.

I do not agree with the arguments of this article. I think there are a lot of risks involved. And house prices should be balanced with salaries, incomes and rents