JSB

May Case-Shiller Housing Numbers

In 2004 no one was saying that home prices are low. I used to hear scream of high home prices in 2003 too. Have our earnings gone up so much since 2003 that what we used to call very high in 2003 now appears low? On a long term basis home prices should rise for about 5%, which includes components for inflation and development. What we are experiencing is nothing but correction, which has not yet finished. Due to sharp rise and correction, perhaps like a pendulum movement, we might see some over-correction in the near term.