A few comments on the home market because it can be a indicator for those investors looking at small rental properties. This does cross over into the commercial market as well.
Some of the recent news indicates the market may be on a uptrend and may have bottomed out.
According to information today at Realtor.org pending home sales are on an upward trend, which has been uneven but meaningful since reaching a cyclical low last April, and well above a year ago. The pending home sales index, a forward-looking indicator based on contract signings, rose 2.0 percent to 97.0 in January from a downwardly revised 95.1 in December and is 8.0 percent higher than January 2011. This is the highest since April 2010.
According to Money Morning ‘The housing market has bottomed and there’s money to be made on its return,’. They point out that the National Association of Homebuilders’ Housing Market Index rose five points to 29 in February marking its fifth consecutive monthly increase. They point out that within housing; the important trend is that towards apartment building rather than single-family homes. That home ownership is in decline but the population continues to increase and job creation is healthy. That is confirmed by the details, in the February consumer price index, which show that rents have risen by 2.4% in the year to January, compared to a decline in the Case-Shiller home price index.
Warren Buffett said in his annual shareholder letter, posted this weekend, that he was “dead wrong” when he predicted last year that the rebound in U.S. home prices would begin within a year. This year, though, he’s betting again that the housing market will recover. During an appearance on CNBC this morning, Buffett said he would buy up millions of U.S. homes if it were possible.
So if the market is near or at the bottom, what opportunities does this provide for the investor or someone wanting to get into the market? Work with your agent and explore your options. I hope some of this news of today will help you.