“Real estate (a home) is by far the most important asset that most individuals will ever own. It is comparable in market capitalization to the exhaustively-studied stock and bond markets. To not know whether U.S. residential real estate fell by 23% or 43% in the last bear market (or whether it rose by 50% or 80% in the eight years before that) is troubling…

…We believe it fell by an amount closer to 43%, but a little less than that if one includes unglamorous cities, small towns, and rural areas. We also believe that real estate bear markets occur from time to time – three or four times in a half-century– casting grave doubt on the widely-held view that house prices don’t go down except in the rarest of cases.”, Cesar A. Orosco and Laurence B. Siegel, Excerpt from the Conclusion of “How Rare are Housing Bubbles? Understanding the Case-Shiller Index and Its Counterparts”, Advisor Perspectives, September 9, 2014

Posted on September 16, 2014, in Postings. Bookmark the permalink. Leave a comment.

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