Housing Coming Down But Millionaires Already Got Out

The Case/Schiller home price index now shows that housing prices dropped a record 15.3% in the past year and are now at 2004 levels. Another report shows that the rich dumped their real estate in 2006.

It's all over the business press today.  The latest Case Schiller numbers are out and they show that the price of houses dropped a record 15.3% in the past year, bring value back to their 2004 levels.  Here are some of the headlines:

An interesting article in the WSJ says that Rich Investors Dumped Real Estate in 2007.

"Surprisingly, the report says the real-estate decline was due to profit-taking, not lower values. 'In 2006, real estate experienced record returns across various categories. Many investors took profits from these increased valued and moved their money into other asset classes.'

In other words, it seems that the rich pulled out of the real-estate bubble earlier than most."

Interesting.  So who were these rich?  They certainly didn't work work for the major investment banks, except for maybe Goldman Sachs.

 

Sam Cass
Sam Cass: Sam Cass, MBA, JD, University of Texas at Austin. Always a fan of Leonardo Da Vinci.

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Comments

  • Sol Nasisi

    June 25, 2008

    This wasn't that hard to see. The charts on housing price appreciation weren't sustainable. I'm just surprised it took until 2006 for prices to level off and come down. Whenever people say that something is safe and will never lose value, get out fast.

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