Real Estate Forecast

When trying to understand the economic environment in which we live, most of us tend to think in the very short term.  This is understandable because we need to take care of today by paying our bills, taking care of our families and making a living.

However, when trying to understand how to structure your investments, short term thinking can be very harmful.   One of the greatest lessons  I was taught by one of my mentors is how important housing is to the economies of the world.  To paraphrase:  As goes housing, so goes the world.  But then, we have to understand  the cyclical and secular nature of markets.   Long term cycles can be seen beyond our lifespans, so they are very hard to accept and often times dismissed.

The following essay by Martin Armstrong gives a very broad perspective on housing and the overall (secular) trend we are now in.   This is his real estate forecast.  2007 was the turning point.   I would recommend reading this so that you can better  understand these cycles and how real estate drives everything. It will give you a better grasp of how to be successful going forward.  If you want to skip the history and go right to today’s update, jump to page 13.

To read the essay, click on the link below.

A Forecast for Real Estate, Martin Armstrong

Related posts:

1. Real Estate Forecast: The Structural Shift Underway In the Housing Market
2. Real Estate – Things I would do and things I wouldn't do.