Are Housing Prices Rising Too Quickly?

GMO is an asset management firm based in Boston. They produce some of the best commentary on the web and their Quarterly Letter is a must read in our office.

One of the points they made in their most recent letter is that housing is getting pricey….yet again. This is both unfortunate and something worth monitoring. It was primarily the housing bubble that caused us so much grief in 2008.

GMO housing price chart

While homeowners may cheer rising prices, the truth is that inexpensive housing is a bigger benefit to the economy, much more so than artificially inflated asset prices. Let’s hope things don’t morph into a full-fledged “echo bubble.”

You can access the entire letter here.

About Michael McGinley, CFP®, AIF®

Michael McGinley has worked in the financial services industry for over 15 years. He is currently a partner at Providus Advisors, an investment advisory firm located in Chandler, AZ.

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