Saturday, August 29, 2026

The 18 year housing cycle

 


The 18 year cycle dates back to 1836.  The formula is seven years of slow steady growth, a short recession, seven years of rapid growth, then a four year crash. 

Real estate prices peaked in June 2022, so the 4 year crash should be over now.  However, an economist noted that the drop in prices has been slower than typical and came up with a new date for the housing bottom:  February 2027.

However, if the last bottom was in 2012, and if the peak is really in December 2026, (because median prices have increased slightly since a year ago), then the next bottom won't happen until about February 2030

No comments:

Post a Comment