Real estate guru Bruce Norris made some predictions yesterday as to where the real estate market and the economy is heading.
First, as to why this guy commands respect: His forecasting record looks good. In 1997, after 7 years of housing prices declining then stabilizing, he predicted they would double in 8 years. He was mocked for that call. Then he turned bearish in 2005, and in January of 2006 published a prediction that prices were wildly overblown in certain parts of the country and would fall radically.
Anyway, here is a summary of one observation and prediction regarding interest rates:
Perhaps the good news is the prediction for consistently low interest rates. “This is one of the conclusions that I didn’t think I was going to come up with. I really thought that we’d probably have some scary interest rates but I just don’t think so. Without an overheated economy, I don’t see the big inflation risk for the next period of time. I see the big picture that it could be very scary but for the length of time that I’m trying to cover in this report, I’m not as afraid of it as I thought I’d be,” said Norris
Read more of his predictions. Warning: It’s not all good news.
File Under: Don’t worry. Be happy.