It is natural, and often times comfortable, to use historic patterns in order to understand the present and perhaps the future. Currently, investors make comparisons of today's real estate pricing to that of the prior peak, before the 'global financial crisis' (GFC), but these comparisons typically use only a few variables (a.k.a. headline grabbers). These comparisons wittingly use sports analogies such as; "What inning/quarter/ half are we in?" This does a disservice to an investor when the true economic landscape is a confluence of many factors. This paper will assess some of the notable factors but is by no means a conclusive picture of the future to come. The following pages will go just below the surface in six key areas of real estate market health.
Source : UBS AG