Monday, October 22, 2012

Morning Real Estate Fix

Should investors buy into housing recovery?  (U.S. News & World Reports)  The backlog of people able to buy their own home is large, making housing stocks a good investment.

Amid positive signs in housing, uncertainty remains (Fannie Mae)  Although the majority of news about the housing sector has lately been positive, substantial risk remains, and the looming fiscal cliff caused by unsustainable debt tilts risk toward the downside.

DC moves from 1st to 8th on list of best places to invest (Urban Land Institute) In a new report on emerging trends in real estate, ULI report shows that DC fell from the top of the list as the "low-gear real estate recovery" lifts some previously slow markets.

Real inflation undermines housing recovery (Realty Biz News) Despite conventional wisdom that inflation benefits homeowners, the cost of living is going up while home prices are remaining flat, a fact that government statistics are purposely not showing.

Home price appreciation helps recovery (National Assn. of Home Builders) Rising home prices across the nation show that the recovery is underway.


Anonymous said...

inflation benefits home owners by increasing house prices relative to fixed mortgages.

inflation is not helping home owners now, because we don't HAVE inflation - price increases generally are modest.

The relative price increase between housing and other items is independent of the general rate of inflation.

Anonymous said...

Maybe I'm wrong. But under an inflationary economy (rising prices) fixed monthly payments tend to be beneficial. Two examples comes to my mind. Rising prices normally means good economy (not always), probably leading to rising rent. Also, there is an expectation of rising salaries. This in essence makes the debt "cheaper". It is true that property values can go down, but once locked in you have certainty.

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