There is a great article on the disconnect between home prices and other key indators on efinance directory. The piece explores the relationship that typically exists between the price of homes in a given market with rent prices, median income, etc., etc. They point out that while real estate prices continually rise, what’s different in this “bubble” is that home prices have risen quite disproportionately to these other key indicators. This not only sheds light on what is different about what’s happening now (and what’s already happened in the last few months) and what typically happens in a hot real estate market it also helps you to understand how to succeed in predicting future real estate prices. This is very educational information and I highly recommend you take the time to read and digest it. Don’t miss this one. Click here for the full story.
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