Hi Elliott Waver,

Here’s another classic from the EWI forecasting vault:

As 2005 ended, the headline of a UBS/Gallup Poll of investor attitudes said, “Virtually no investors expect sudden burst of housing bubble.”

But our January 2006 Elliott Wave Financial Forecast said, “This sentiment is bearish for real estate prices.”

It turned out to be the biggest bust since 1933. U.S. home prices peaked in July 2006, then took a nosedive during the subprime mortgage meltdown. You can see the big drop in the chart below:

What do we think of the housing market TODAY?

Read a recent interview with Bob Prechter where he discusses the cracks spreading through commercial and residential real estate.

Bob covers real estate in both the August and September issues of his Elliott Wave Theorist.

Subscribe now to read both issues.

Sincerely,

Derek Bruce
Elliott Wave International