Property busts have occurred after booms in 1971, 1989, and 2007, all following the 18-year trend.
With this exceptional precision in cycle estimation, we must believe that the current real estate boom in the United States will continue until 2025!
We could speculate that the pace of the outright speculation stage of the cycle has been accelerated, which would seem to correspond to what is happening in terms of “flipping” behavior and prices, as well as the proliferation of realtors.
What’s fascinating about this real estate mania in the United States is that it hasn’t been followed by an outperforming real estate sector in the stock market.
Perhaps this reflects the fact that this boom was largely manufactured artificially and would eventually be revealed to be a passing fad.