A Reality Check on Relative Home Prices
Most of my technical analysis is derived from a fundamental observation: Where a vertical supply curve creates a shortage of adequate housing, it leads to asymmetrical rent and price appreciation. The most expensive homes are relatively unaffected, and the inflationary effect of the shortage is proportional to the socio-economic distance between any given home and the most expensive homes in the metropolitan area. That pattern defined the expensive coastal metropolises before 2008 and now shows up across most cities, to some extent. Where prices are elevated for other reasons, like cyclical fl
