The bearish arguments for real estate boil down to two points: (1) overhead supply will overwhelm demand, and (2) rising interest rates will lower loan balances. These are two very different arguments. The supply argument is is based on the total number of homes demanded through household formation. The interest rate argument is based on the total amount those new households can borrow. I believe the first argument is compelling. There are too many houses to be absorbed by current [Read More...]