Although the media pundits doing all of the spinning would sure like you to think so!! Here’s my theory, a significant portion of the extreme negative press is being influenced directly by Wall Street – because while Real Estate was going gang busters, the stock market was languishing.
What’s the reality?
“Housing prices have fallen five percent since their peak July 2006, according to the September Standard & Poor’s Case/Shiller monthly index, but the damage isn’t as bad as the financial press makes it out to be. While Robert Shiller, chief economist for MacroMarkets LLC notes that the 1.7 percent drop in 20 index markets is the biggest single slide ever, the aggregrate 4.5 percent year-over-year slide is nothing compared to the 10 percent bath stockholders took just this month.“
The reality is that real estate is still the safest and strongest investment for the average American. It’s the best place to put $10,000 to $50,000 with the ability to use the full value of the investment ($100,000 – $500,000) by either living in it as your main residence or renting it out and having tenants pay the mortgage payments. Yes, ‘fears’ about the economy have influenced second-home and investment home buyers and to some extent has deterred some first-home buyers. But, those that choose to buy vs. rent will continue to do so, despite the media. If you are planning on living in your home for more than 3-5 years, you will always make out better in North Idaho by purchasing as opposed to renting.
Oh, and interest rates just dropped below 6% on conforming loans – for the first time in over a year. IHA and FHA loans are hovering at 5.7% – 5.8% – excellent rates!
Filed under: For Buyers, For Investors, General Real Estate | Tagged: real estate, safest investment
