I borrow from Gary Shilling in our Investment Survival Seminars. He was by far and away the most accurate prognosticator for 2011. Real estate investors would be wise to listen.
Why Renters Rule U.S. Housing Market (Part 2): A. Gary Shilling
By A. Gary Shilling Feb 22, 2012 5:01 PM MT
TIn making my case for continued housing weakness, I’ve emphasized the negative effect of excess inventories on house sales, prices, new construction and just about every other aspect of residential real estate.
In housing, as in every goods-producing sector, excess inventories are the mortal enemy of prices. Lower prices are needed to unload surplus inventory, yet they also lead to the creation of more inventory by anxious sellers. The plight of house sellers and the reluctance of buyers are made worse by the realization that house prices can fall, and are falling for the first time in 70 years.
via Why Renters Rule U.S. Housing Market (Part 2): A. Gary Shilling – Bloomberg.