Real Estate Decoded

April 27, 2021

Lower Mortgage Rates Now Completely Converted into Higher House Prices

With the same monthly principal and interest payment, you could borrow 9% more money. USA house prices, however, increased 12% and are continuing to increase fast.

April 9, 2021

We Could Have Switched From 30-year Mortgages To 20-year Mortgages… Without Increasing Monthly Payments!

We could have switched from 30-year mortgages to 20-year mortgages without increasing monthly mortgage payments!

March 30, 2021

Case-Shiller – U.S. Inflation-Adjusted House Prices Up 10% in 2020

Phoenix had 16% house price appreciation (nominal) in 2020! Seattle and San Diego saw 14% annual appreciation.

February 27, 2021

80% of Home Price Appreciation Since 1990 Was Due To Falling Mortgage Interest Rates?

It certainly seems that most of the house price appreciation over the last 30 years has been due to falling interest rates.

February 24, 2021

U.S. Real House Price Appreciation Up 9% in 12 Months – Phoenix Up 13%

Real, inflation-adjusted house prices increased 13% over the previous 12 months in Phoenix.

February 12, 2021

2021 Housing Boom Will Bust Joe Biden’s Reelection Chances in 2024… If History Repeats Itself

If history repeats itself, inflation-adjusted house prices will be falling in 2024. That would be an extremely difficult headwind for President Biden and the Democrats to overcome.

January 26, 2021

Real U.S. House Prices Up 8% in 12 Months

Inflation-Adjusted Case-Shiller Home Price Index Will Surpass 2005-2006 Peak Bubble Prices Soon.

January 23, 2021

2020 Home Prices LOWER than in 1990 in Some Cities… After Adjusting for Inflation and Mortgage Interest Rates

How have 30 years of falling mortgage rates changed the economics of homeownership? The answer shocked me and changed my view of how the real estate market really works.

December 29, 2020

U.S. Inflation-Adjusted House Prices Highest Since 2005-2007

For the U.S. as a whole, real, inflation-adjusted house prices were up 7%.

December 19, 2020

Increase Home Ownership Fast – History Shows Us How

President-elect Biden’s campaign proposal for a $15,000 first-time homebuyer tax credit would be a disaster for homeownership. I propose a new, alternative policy that would increase homeownership fast.

October 27, 2020

3 Reasons Housing Market Is HOT & Case-Shiller Home Price Update

Before we dive into the Case-Shiller data, let’s talk about why the market is so hot despite the Coronavirus.

September 29, 2020

House Prices Have Strong Upward Momentum After Mortgage Rates Fall 2% Since Nov. 2018

House prices have a ton of upward momentum behind them after nearly 2 years of constantly falling mortgage interest rates.

September 27, 2020

Home Prices Skyrocketing Because Of Low Mortgage Rates, Not Because Covid-19 Increased Demand For Large Homes

The main driver of the current real estate market mania is the lower mortgage interest rates, which were in turn caused by the Federal Reserve’s response to Covid-19.

September 26, 2020

The Paradox Of The U.S. Black Home Ownership Rate

… in the 30 years from 1940 to 1970 when housing discrimination against Blacks was legal and horrific, the U.S. Black home ownership rate nearly doubled going from 23% to 42%, but 50 years after the 1968 Fair Housing Act became law, the U.S. Black home ownership rate was essentially the same as in 1968. It was 41% in 2018.

September 11, 2020

3 Most Important Proposals In Joe Biden’s $640 Billion Housing Plan

[An earlier version of this piece appeared in Forbes.com.] Housing policy wasn’t a major theme of the recent Democratic National Convention, however, Joe Biden did put out a Housing Policy paper last February. If Biden gets elected, any new housing initiatives are likely already inside his 14-page policy paper. Biden’s housing policy has a few major ideas, and a laundry list of new programs and new money for old programs. “Housing Should be a Right” The first paragraph of Joe Biden’s housing policy paper says, “Housing should be a right, not a privilege.” Later it says, “On the first day of his Administration, he will direct his Secretary of Housing and…

August 25, 2020