curse the flush toilet: real estate

  1. 1,048 Posts.
    a few years ago 10% return for residential while interest rates were 10-13%

    when interest rates do revert to 10%, who could be happy with 5%? therefore prices must fall.

    yet a long time ago when interest rates were 17% and real estate was booming, the cut in interest rates which followed didn't see reduced prices.

    conclusion: house prices have nothing to do with return.

    ie no fundamentals

    no fundamentals means no security of price, other than supply and demand, which means the market relies on two vital ingredients

    1.banks awash with money

    2.cities overrun with people

    p.s. curse the flush toilet: it has only delayed the needed population decisions

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.