Thursday, June 20, 2013

Housing Recovery is Precarious- Shilling

And here is another reason why the Fed will taper the taper talk.It has been my conjecture that a large part of the housing recovery, albeit real, has been nonetheless predicated on investment sales. What do you think would happen to real estate prices if a decline in cap rates drives investors to sell their holdings. That, of course, may be an exaggeration, but at the very least a decline in cap rates would drive out the 'marginal buyer'.


The video can be found here.

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