Jamie Dimon is head of USA’s largest bank with 2.2 trillion in assets and operations in more than 60 countries. According to an interview with the CEO of JPMorgan Chase, “you better buy that house you want really soon because it’ll change in price right away”.
People think housing is terrible, but the early indicators tell you a lot about where it will be in 18 months or so. Supply and demand are coming in balance rapidly. Renting is now more expensive than buying in half of America. With 3 million Americans being added every year, in the next 10 years, there will be 30 million more. With that we will need approximately plus or minus 15 million homes. Once housing construction goes up to a million and a half, two million jobs will be created and the economy will get better.
The troubled housing market has bottomed. We have seen the worst.