Daniel Gilbert, Harvard psychology professor, internationally famous happiness expert and the guy in those Prudential Financial commercials, thinks real estate transactions are “almost all psychology”.
Real estate economists perform a vital function in our society: they predict the future with 99 percent accuracy. And for that one time in a hundred when they get it wrong, they offer a money-back guarantee!
CNBC says “7 major housing markets now ‘overvalued'”. Amazingly, Silicon Valley isn’t one of them. Maybe the Valley has finally turned the economists into believers. Or maybe it’s finally worn them down.
Cities that are on the “overvalued” list? You’d never guess.
Nine of ten leading brand-name economists say “there is no bubble to be anxious about”. Actually, only one, the economist in charge of the S&P Case-Shiller home price indices, said that, but he looks sincere and I trust him.
It’s nothing new for local home prices to soar beyond the reach of most home buyers, but there is something different about this market: “foreign investors”. I use quotation marks because it’s my belief that a significant number won’t be foreign for long, and that many are anything but the typical investor, content to bleed an asset dry while living tens, hundreds or thousands of miles away.
An article by Richard K. Green, director of the University of Southern California Lusk Center for Real Estate, makes some interesting points about Chinese investors.
It just seems inevitable that whenever science, or more accurately, “science”, turns its lofty gaze to real estate if falls flat on its face.
In the ongoing crusade to turn data into meaningful information into big bucks, Money Magazine has named Milpitas the 29th most appealing small town in America. It’s one of only two Bay Area towns–Pleasanton came in 31st–to make the list. I, personally, have no opinion concerning Milpitas (which might mean “little cornfields”, according to Money) because I’ve…