Saturday, September 23, 2006

How low can we go?



I'm not saying this bubble will end the same way it did in Japan, where housing slid for 14 straight years, but rather point out that it is possible for real estate to go down over a significant period of time. BTW, might be a good time to buy in Japan - it's starting go up in Tokyo.

How fast and how far this housing market (bubble) will correct is anybody's guess, but every asset bubble since WWII has eventually returned to the mean.

2 Comments:

At 11:16 PM, Blogger David said...

That graph looks fishy. Why is one offset by 15 years? Looks a little like someone is trying to *make* it say what they want it to say. :)

 
At 11:58 AM, Blogger unlawflcombatnt said...

It looks like a perfectly representative graph of what happened in Japan, while showing a parallel with prices in the United States, and what the course of home prices might be in the future in the United States.

The graph doesn't look the slightest bit "fishy" to me.

 

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