Real Estate Prices in Major U.S. Cities Continue to Rise

[Cycles Trading With Phil Anderson]( Welcome to Cycles Trading with me, Phil Anderson. My aim with this three-day-per-week e-letter is to introduce you to the most powerful knowledge for building wealth. And that’s the 18.6-year real estate cycle and its key relationship to stocks. Every 18.6 years, property, economy, and stock markets move through a repeating series of peaks and troughs – like clockwork. And the market has followed this cycle for over 200 years. Using this knowledge, I’ve been able to forecast every major market move over my 34-year career. If this is your first time tuning in, catch up on my[background]( how I [predict the markets]( and how I’ll help you avoid [false alarms]( from the mainstream media. Real Estate Prices in Major U.S. Cities Continue to Rise By Phil Anderson, Editor, Cycles Trading with Phil Anderson Another mainstream media story has it completely wrong… Yahoo Finance has published a piece titled “10 US Real Estate Markets To Avoid for Now.” The article tells you about 10 real estate markets in the U.S., nine of which have seen house prices rising in 2022… …and recommends avoiding them. What? As an investor, would you rather invest in rising or falling markets? I think the answer is obvious. You want your home equity to grow in value, not decline. (I’ll explain why home equity is so important in a moment.) But that is what this particular piece suggests: to avoid the areas where house prices are rising. Will They Continue to Rise? It’s a legitimate question… Trends don’t continue forever. At some point, they slow down, pause, or reverse. Why am I so confident that the real estate trend is going to continue? Because I have a market “[cheat sheet]( It’s a simple but powerful pattern that has been repeating itself for centuries… and it’s been more pronounced than ever since the land price low of 1955. After World War II, real estate cycles have lasted almost exactly 18 years, with 14 years up, and four years down. I get asked this question a lot… “What drives the cycle?” For one, interest rates. The long-run historical interest rate is about 4-5%. So the number of years required to double your money is about 18 years. Another factor that explains the cycle is home equity. (I discuss it at length in my book, The Secret Life of Real Estate and Banking.) In the past, the real estate cycle turned down when mortgage buyers ended up with negative equity. Note that I didn’t say that prices stop growing or start to decline. They need to decline enough to erode the homeowner’s equity. This isn’t what is happening now. In its latest home equity report published last December, CoreLogic, a data and analytics company, said that in the third quarter of 2022, home equity soared by almost 16% compared to the third quarter of 2021. In absolute terms, it grew by $2.2 trillion. And negative equity fell by almost 10% compared to the previous year. These trends tell me that the real estate market is growing, not turning… yet. And investors should act accordingly, regardless of what the media says. Regards, [signature] Phil Anderson Editor, Cycles Trading with Phil Anderson [Rogue Economincs]( Rogue Economics 55 NE 5th Avenue, Delray Beach, FL 33483 [www.rogueeconomics.com]( [Tweet]( [TWITTER]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Rogue Economics welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-681-1765, Mon–Fri, 9am–7pm ET, or email us [here](mailto:memberservices@rogueeconomics.com). © 2023 Rogue Economics. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Rogue Economics. [Privacy Policy]( | [Terms of Use](