US Property Prices Low - Investors Return
Signs are pointing to the US housing market rebounding this
year, experts say in a recent article in The Wall Street Journal.
Investors are back in the market, betting on a rebound and snapping up
houses and condos – often in all-cash deals.
Furthermore, US housing is at the most affordable it has been in decades
nationwide, according to analysts at Moody’s Analytics. The cost of a
house is equal to about 19 months of income for an average family, which
is the lowest level in 35 years.
“Pricing is down so much in some markets that when you analyse renting
versus owning it makes much more sense to own,” says Michael Larson, a
real-estate analyst at Weiss Research in Jupiter, FL.
“Housing prices will probably bottom in 2011,” says Scott Simon, a
managing director at the money-management firm Pimco in Newport Beach,
Calif. Although housing prices might dip another 5 percent, he says,
this is a small amount when some prices have dropped by half or more
since they started falling in 2006.
Posted: 17 February 2011
Source: Wall St Journal
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