Today, we have many times more real estate information than last cycle... Did all the information we’ve had in recent years about the real estate market make the market more rational...
Hi John, interesting idea but I'm not sure I agree that "information" is the reason the market tanked this time. Interest rates and affordability getting hammered by the Fed over the past 6 months seems to outweigh being able to see 75 pictures on Zillow for every home sold.
Interest rates were definitely the #1 reason but I think prices went so high so fast because of all the information driving the herd instinct and that they turned down so much faster than last time, in part, because of all the information.
Hi John, interesting idea but I'm not sure I agree that "information" is the reason the market tanked this time. Interest rates and affordability getting hammered by the Fed over the past 6 months seems to outweigh being able to see 75 pictures on Zillow for every home sold.
So efficiency increases volatility? Imagine a world where houses trade like stocks. I don’t think it is too far fetched.
Interest rates were definitely the #1 reason but I think prices went so high so fast because of all the information driving the herd instinct and that they turned down so much faster than last time, in part, because of all the information.