Zeev's Turnips Patch-No Politics (ZEEV)

[Joe Stocks]

>>Generation to a generation spans what... twenty to thirty years or ...? Then in your view, when would real estate start to cycle down again, that's the question in my mind?<<

Genrrations are 18 years typically speaking. The baby boom generation are those born between 1946 and 1964. Going by demographics the housing bubble should have peaked in 2000-2001. The average person builds or buys their largest and most expensive home at 43 years old. The meat of the boomer generation were born between 1950-1957. Add 43 years to that and you get 1993 to 2000. Housing also drives our economy. Look how our economy did during that time.

But, housing kept surging as the economy slowed. Why? Because lower interest rates and the lowering of credit quality brought many more first time homebuyers into the market that were previously left out.

When will this cycle end? IMO, it is overdue. Credit quality can only be reduced so far. Same with interest rates. I don't see any reason why are not near the top.

Joe