Understanding Real Estate Understanding Real Estate
Understanding Real Estate Understanding Real Estate
Understanding Real Estate Understanding Real Estate
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U.S. Housing as an Asset Class<br />
AM Major Asset tClass<br />
Yet…<br />
Housing markets remain highly inefficient, incomplete<br />
• Generally, prices are established by non-professionals (i.e., homeowners)<br />
• Periods of speculative behavior exacerbate momentum<br />
• Transactions touch concentrations of net worth and emotion<br />
- “Sticky-downward” prices<br />
• Incomplete information<br />
• Very high transaction costs<br />
• Illiquid; significant elapsed time to complete transactions<br />
U.S. Housing: 21 st Century Alternatives for Investment and Risk Management<br />
20<br />
MacroMarkets LLC © 2009
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