Dear fellow investors,
Most people tend to see what’s right in front of them, especially when it comes to housing affordability. Consider that most of the media organizations in the U.S. reside in the expensive coastal cities. These cities are suffering a decline in home values and contributing to a discussion on what higher home prices and higher interest rates could do to the number of new homes built nationwide. An examination of the laws of supply and demand are essential to this discussion, as well as a review of human behavior in markets based on affordability. We remind ourselves that coastal cities—like our own Seattle—are the exception, not the norm.