Is the time finally right to get back into the residential real estate game? And what are the broader implications of trends in housing on the overall economy and financial markets? Let's take a look at the arguments and data.
The Case for Investing in Housing
Mortgage interest rates have come up some recently but are still near historic lows and appear attractive.
We're also entering the comparatively slow home buying season and prices, after a post-bubble popping uptick, have been retreating recently. There may be some sweet deals to be had over the next several months.
And perhaps most importantly are the following two considerations: a) the overall economy is showing increasing signs of life and b) the risk of deflation appears to be subsiding as commodity (e.g., oil) and food price inflation is taking off globally. Real estate has historically been considered one of the best ways to protect oneself against broad inflation.
Add it all up and it would appear that housing could in fact be a prudent investment right now. What would be reasons for holding off?
Continue reading the full article published on SeekingAlpha here.
The Case for Investing in Housing
Mortgage interest rates have come up some recently but are still near historic lows and appear attractive.
U.S. 30-Year Mortgage Interest Rates
 |
| Note: chart data only runs through early 2010; if updated through 2011 the chart would show a recent increase in interest rates to around 5%. |
We're also entering the comparatively slow home buying season and prices, after a post-bubble popping uptick, have been retreating recently. There may be some sweet deals to be had over the next several months.
And perhaps most importantly are the following two considerations: a) the overall economy is showing increasing signs of life and b) the risk of deflation appears to be subsiding as commodity (e.g., oil) and food price inflation is taking off globally. Real estate has historically been considered one of the best ways to protect oneself against broad inflation.
Add it all up and it would appear that housing could in fact be a prudent investment right now. What would be reasons for holding off?
Continue reading the full article published on SeekingAlpha here.
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