Related Topics
Economy , Stocks

History Shows a Correlation Between Real Estate and Stock Prices

U.S. housing prices: Keeping you ahead of the trend

by Bob Stokes
Updated: October 16, 2018

You've probably noticed the return of house-flipping television shows and infomercials in recent years.

Our December 2017 Elliott Wave Theorist made this comment:

A regular Friday supplement to the nation's financial newspaper is titled not "Homes" or "Houses" but "Mansions." As described by the publisher, this "luxury real estate section features estates, million dollar mansions, high end homes and premiere properties around the world." This is another sign of peak optimism in the real estate market. [emphasis added]

That issue of the Theorist called special attention to the home prices in San Francisco, which had reached a record high (chart below):


Around the same time, home prices in other locales were also hitting record highs, including New York City.

So, Elliott Wave International analysts have not been surprised by two news items from CNBC. This first one is from Sept. 20:

Home sellers slash prices, especially in California

In the four weeks ended Sept. 16, more than one-quarter of the homes listed for sale had a price drop ...

This next one published Oct. 2:

The average price of a Manhattan apartment fell 4 percent during the quarter, to $1.93 million, while the median price fell 5 percent to $1.1 million.

Of course, price trends will vary from one U.S. real estate market to another. But what's going on in San Francisco and New York City is certainly not encouraging, no matter where a homeowner or prospective homeowner lives.

Many of these homeowners are also stock market investors.

If you're among them, consider this historical insight from the October Theorist:

Real estate tends to peak out before stocks. Property prices topped in 1926, and stocks topped three years later. Property prices topped in 2006, and stocks topped a year later.

Right now, EWI's analysts are providing subscribers with the all-important details real estate and stock market prices.

Investors Can Be on the Right Side for a Long Time. BUT …

… When an unexpected major turn arrives -- a big percentage of those gains can go POOF!

Indeed, the books of brokerage houses show that this is what usually happens after the completion of most major market cycles.

You can be the exception to the rule.

Prepare for what EWI's analysts see just ahead via a 30-day risk-free trial. Get details below …

Here's How Your Financial Forecast Service Team Works to Prepare YOU For New Opportunities

Read This, And Then Let Us Show You FFS in Action, 100% Risk-Free

Your Financial Forecast Service team includes three of the best-known market analysts in the world – Robert Prechter, Steven Hochberg and Pete Kendall. If you are familiar with Elliott wave analysis, you know exactly who they are.

No other analysts in the world, anywhere, undertake the depth of research that goes into the Financial Forecast Service. Throughout the month, Bob, Steve and Pete sift through mountains of data, often studying 100 years of data or more. Why? Because a chart of the big, long term waves is the only way to know precisely where in the pattern we are today – and therefore, precisely where we are most likely to go next.

Here's what you get with the Financial Forecast Service, 100% Risk-Free for 30 days

Every Month

At the end of each month, your team of analysts gets together and lets the sparks fly. The result? The Elliott Wave Financial Forecast. It's just one of three essential parts of your Financial Forecast Service. When you get a new issue, you can be sure it contains the most critical information you must know about the markets this month.

Three Days Per Week

In addition, at the end of the U.S. trading session every Monday, Wednesday and Friday, your team updates its monthly analysis with the Short Term Update. In STU, they prepare you for the most likely price moves in the next 3-5 trading days.

Latest Research

Finally, once every month, Robert Prechter sends you his very latest research about Elliott waves in the markets and society. For 30+ years, The Elliott Wave Theorist has delivered more groundbreaking market research than any other publication on the planet. One month Bob might prepare you for a multi-year move in a market; the next he will deliver a jaw-dropping study that challenges everything you thought you knew about investing. Whatever he writes, it will help you hone your grasp of the psychology behind the markets – and give you an enormous advantage over other investors.

Prepare for Risks and Opportunities That Will Surprise Most Investors

See our eye-opening forecasts for stocks, bonds, gold, USD and more.

Risk-Free, Start Your Subscription Now


for 1 month of unparalleled market insights