Almost over? part 2

Are further price declines in the cards? If you think there's some inflation around the corner (say in the next few years), now might be a good time to lever up and buy some real estate.

Here's an interesting figure from a recent paper by Case, Quigley and Shiller. The paper is primarily about wealth effects, but it has some nice panel data. They find that the wealth effect is stronger for housing than for equity assets.



Here is a video from the Financial Times discussing the paper and recent housing data.

More discussion and figures like the one below in this earlier post.