July 2017

Written by Robert H. Ruth

Over the past 2 weeks I have reported on the current state of the housing market in the United States, and compared today’s market in 2017 to the market in 2007. My comparison showed some striking similarities between the 2 time periods, and in the media there is concern about the possibility that another housing bubble might be in the works. Whether the market is overheated and may experience a correction is not my concern right now.  My objective in this space is to report on what is happening in the market, and what is driving the current housing economy.

In order to do that I thought it might be a good exercise to develop a picture of the market based upon 5 pillars that are holding up the current marketplace.

Written by Robert H. Ruth

Last week I reported on 4 of the 5 components that I believe are key drivers of  the Housing Economy in the United States, and I compared these components from 2007-2010. My analysis determined that there have been some interesting developments in these components over 10 years.  Specifically,

• The Dow Jones Industrial Average has increased dramatically, which has restored the wealth effect for our economy, a phenomenon that makes more Americans believe they are financially more secure and willing to invest, either in the stock market, or in Real Estate.
• The Employment Rate in the US has improved to pre-financial crisis levels, and our country is once again near what is statistically known as full employment.