Navigating the housing market can feel a bit like riding a roller coaster—there are highs, lows, and sometimes you brace yourself for a big drop that never comes. But the big question remains: are we headed for a housing market crash?
In an effort to get a clearer picture of the housing market’s trajectory, I’ve crafted a score that serves as a barometer for where we stand and what the future might hold. This score isn’t just a number pulled out of thin air—it’s carefully calculated from various economic indicators that affect housing, from construction activity to consumer confidence.
So, what does this score tell us? It gives us a probability curve of returns for the next year. If the score is riding high, we’re likely to see a favorable curve, suggesting that house prices are poised to climb, and the market’s health is robust. It’s a potential signal for growth, indicating that buyers may be feeling confident and ready to invest.
On the flip side, a low score shows us a different kind of curve, one that signals caution. It suggests there’s a chance for a downturn, or at least some stagnation in house prices.
The Housing Divide: Affordability vs. Investment
To discuss business ventures or partnership opportunities, please direct your inquiries to Rodrigo Munhoz, CFA, at contact@rmzinvesting.com.