Homes Gained $2 Trillion in Value This Year

Re-Blogged From Newsmax

Your home may not have made the same gains as stocks or bitcoin, but it still was a robust year for the U.S. housing market.

The value of the entire U.S. housing stock increased by 6.5 percent — or $2 trillion — in 2017, according to a report from Zillow. All homes in the country are now worth a cumulative $31.8 trillion.

Image: Homes Gained $2 Trillion in Value This Year Under Trump, Zillow Says
(Mark Plumley | Dreamstime) Continue reading

The Housing Bubble Is Back

By John Rubino – Re-Blogged From Dollar Collapse

Last week I ran into a friend whom I’d been worrying about. He’s a real estate appraiser and his work had been drying up as interest rates rose and homeowners stopped refinancing their mortgages.

But now he’s back to being happily swamped because instead of refinancing, everyone is buying — often, he says, for above the asking price.

A couple of days later my wife and I were at a slide show put on by friends just back from New Zealand. They’d heard that a neighbor was thinking about selling his house and on an impulse made him an offer. He accepted, and our friends became instant homeowners.

Continue reading

Housing/Gold Ratio As A Valuation Indicator

By Daniel Amerman – Re-Blogged From http://www.Gold-Eagle.com

The Housing/Gold ratio is a quite useful measure for evaluating relative values between real estate and gold, and also has an interesting historical track record for identifying turning points in long-term gold price trends.  In light of the commodities rout occurring in the summer of 2015, and the continuing strength in housing – it is worthwhile revisiting this basic measure, because the results aren’t at all what most people likely think they are.

The graph below shows the Housing/Gold ratio for the modern era in the United States, from when gold investment was legalized on December 31, 1974 through November of 2011.  When analyzed at that time (link here), the ratio clearly showed an historic outlier was being reached in terms of gold being expensive relative to real estate.

Continue reading