House Price Again

It is a house price topic again since it has reached to a level of craziness that many people don’t understand. To claim it is hard to understand is easier than really try to understand it.

I have two basic judgment.

1. House is like Silver + Stock

Houses are the combination of two basic functions. 1) a place for people to live; 2) an physical representation of wealth. It is just like silver in the early days before the paper money.

The function of silver is more about representation of wealth, and as a tool to facilitate trading, than as a decoration or making tools.