Seth Chalnick

Market Prices: The Great Chasm

Hi Carl, thanks for your comment. I agree it will take about 10 years to get back to previous highs, and eventually this too shall pass. After short-term deflation, I expect we’ll see massive inflation, followed by demographic explosion that will ultimately blow prices past previous highs.

I also see a wide gap between high and low-end market segments. As high-end falls from grace, some lower-end homes are trading below intrinsic value. I expect they will hold their own, or come up a bit to bridge the gap, as foreclosure displacement puts upward pressure on the rental market. Plus, while the historically low rates are only good for low-end purchases, it does present great buy and hold opportunities… especially now, while folks scramble to preserve their ass…ets.