[Nonstatist]

Housing prices in Japan have not recovered from the 1980's. There is nothing sacrosanct about real estate or the US housing market in particular.

Demand has been artificially hyped up thru easy money lending practices and speculation. Just like what happened in Japan.

[chris1]

Everyone I knew who were stock marketeers in the late 90's immediately ran to RE once that market crashed. I knew all I needed know about what is going on when I saw that happen.

Its like the Sopranos episode when they hyped that b.s. stock "limbistics" and all sold out right before they knew the floor would drop.

[kabar]

Sorry, but the Japanese banking system and real estate market is not like the US. Japan has a declining, aging population, which certainly has an impact on residential real estate. Japan does have a home ownership rate of around 60%, which is comparable to ours. Japan has also suffered through almost two decades of deflation/stagflation.

No one is saying the real estate market is sacrosanct. Nor are the stock market, bonds, etc.