I received a lot of feedback regarding last month’s editorial about the residential housing market. I’m not surprised, since residential real estate makes up the bulk of many investors’ net worth. As a form of follow-up, this month’s book, website and article of the month all relate to this important topic.
John R. Talbott, a former Goldman Sachs investment banker is the author of the subtly titled, SELL NOW! The End of the Housing Bubble. The book is a much more thoughtful analysis than the panic-inducing title might suggest. He explores a number of the issues that I discussed in last month’s editorial, but he also brings up a number of issues that I hadn’t considered. For example, with today’s low interest rates, the value of the mortgage interest deduction is much less than it was in the past. He also debunks a number of the arguments that are put forth by people who think we are not in a housing bubble.
