I was going to write about some of the big flaws in this piece but CR beat me to it (as he always does).
I would just add a little local color. First, here in SD homes have absolutely not become affordable again. Even if you accept his wrong argument that rates are all that matter, note that rates aren’t terribly lower than they were in 2001-2. Prices (even inflation adjusted) are still much higher.
…has some data to support CR’s argument that price to income is a better valuation metric than price-to-monthly-payment, and that rates haven’t had much influence on valuations over the years.
Rich
PS – Great find HWG… I note that this guy’s fund owns a certain recently-defunct investment bank… since he obviously didn’t see the problems coming, why should we believe that he’ll know when it’s fixed?
