Lennar Corp. (the 2nd largest US homebuilder) has broken 2 monthly swing lows and hasn’t come close to retesting its local 50%. Meanwhile, the US Case Shiller Home Price Index is at record highs.
This is a perfect example of what the end of the 18.6-year Real Estate cycle looks like. We’re in the “winner’s curse” phase and we usually hang out here for less than 2 years, sometimes as short as 9 months.
Land, being the largest asset class in the world, holds approximately $500 trillion in value, so it takes time to create major corrections.
Lennar Corp. (the 2nd largest US homebuilder) has broken 2 monthly swing lows and hasn’t come close to retesting its local 50%. Meanwhile, the US Case Shiller Home Price Index is at record highs.
This is a perfect example of what the end of the 18.6-year Real Estate cycle looks like. We’re in the “winner’s curse” phase and we usually hang out here for less than 2 years, sometimes as short as 9 months.
Land, being the largest asset class in the world, holds approximately $500 trillion in value, so it takes time to create major corrections.
