The Wall Street Journal’s recent quarterly survey of conditions in the housing markets of 28 of the nation’s largest metropolitan areas found that prices declined in 23 of these markets. In contrast, rent levels have risen substantially, while mortgage rates are the lowest they’ve been in 60 years. Read the entire article in the Wall Street Journal Online.
Hedge funds, private-equity firms, pension funds and university endowments are plunging into the home foreclosure market. Purchasing foreclosed homes as investment properties has traditionally been dominated by small, mom-and-pop investors. But now, the attraction of potential double-digit returns is attracting big organizations with lots of money to invest. This trend coincides with a time when most bonds and other income investments are yielding very small returns. Read the full article on The Wall Street Journal online.
CNBC recently hosted a panel bringing together real estate experts and top industry CEOs to discuss whether now is the best time to get back into real estate, and where investors should place their money. View the video here on GuruFocus.com.
The Local Market Monitor, a firm that specializes in forecasting real estate prices, has determined that – over the next few years – low home prices and relatively strong rents should generate healthy profits for real estate developers in selected cities. Las Vegas is one of the top ten such markets. Read the full online article at CNN Money.
The continuing economic distress in the housing sector has generated many tens of thousands of new renters across several age groups in metropolitan areas that haven’t been strong rental markets in the past. While the housing sector as a whole has not seen significant improvement, the apartment market has been the best hope for a return to more profitable times. Read the entire article on Costar.com.
A recent survey by the San Francisco-based Trulia.com real estate listing service shows that Las Vegas ranks as one of the best cities in the country to purchase a home. Home ownership bests renting in 74 percent of the top 50 metropolitan areas in the nation, and with prices at a 20 year low, Las Vegas is near the top of the list. Read the entire article in the Las Vegas Review-Journal.
While home prices have declined across the country, the demand for rental units has increased significantly. This trend has progressed to the point that it is actually cheaper to rent than to own a typical two-bedroom house in most major cities in the United States. Read the full article on CNN Money.