Visible Investment Advisors: Housing surprises

THE sudden rise in home prices suggests that the psychology of the market has shifted substantially.

This year’s [home-buyer] survey coincides nicely with the upturn in home prices, the sharpest change in direction [the survey has] ever seen. The suddenness of this shift surprised [Robert Shiller]..."the new data are startling."

Given the abnormality of the economic environment, the sudden turn in the housing market probably reflects a new home-buyer emphasis on market timing. For years, people have been bulls for the long term. The change has been in their short-term thinking. The latest answers suggest that people think the price slide is over, so there is no longer such a good reason to wait to buy. And so they cause an upward blip in prices.

The sudden turn could signal a new housing boom, but is more likely just a sign of a period of higher short-run price volatility.

VIA Comments:

We share this article not to agree or disagree with the survey's findings, but to illustrate what we have always believed that the future is unpredictable.
Nothing in this article and survey should be used to guide your investment decisions in housing, stocks or anything else.
Assets have increased in value at a very rapid rate in the last 7 plus months. If you did note benefit from this increase, you need the help of a qualified investment advisor.