Housing Market Outlook for Year 2015
The housing market is composed of buyers and sellers of homes. Information on the housing market encompasses the supply and demand for homes as well as the inventory level of unsold homes. In markets around the country and different nations, you will have a natural progression of demand and supply. In some markets, there are new citizens moving to the city creating demand and, unless there is enough supply to match this demand, prices will rise. Income levels and mortgage rates also play a role in determining how many transactions occur in any given housing market.
One of the hardest lessons to learn is to buy assets when others are selling them. As an investment strategy, if there is value in something, at some point, the market will rebound, provided that there are fundamental reasons for this to occur. Take the case of our housing market. From the depths of the Great Recession until now, the housing market has made a huge move up. Yes, it was pushed by the Federal Reserve, but there were fundamental reasons why the housing market showed value as an investment strategy. One company that I’ve liked for many years is The Blackstone Group L.P. ... Read More
Recently, in the U.S. economy, we have been seeing decent jobs numbers, cheaper gas prices, and appreciating wealth in the housing market. The end result is consumers with more money to spend on things that make them happy, such as dining and travel. And I can see an investment opportunity opening up in some restaurant stocks. When people are confident with their financial situation, they tend to spend more freely. Take a look at the chart of the Dow Jones US Restaurants & Bars Index, which has been edging higher and appears to be breaking out following a sideways channel. I feel there’s a continued investment opportunity in the sector, as lo ... Read More
For those who believe the housing market is set for a downfall after running higher for five years, you may want to rethink that. The reality is that the housing market is faring quite well right now, boosted by decent jobs growth—more than 200,000 monthly for the majority of 2014—and an unemployment rate at 5.8%. The fact that the financing costs for the housing market remain historically low translates into what has developed into a healthy demand for new home builds and resale. In the housing market, the news continues to be good. The key housing starts metric came in at an annualized 1.009 million in October. This was slightly below estimates, but non ... Read More
The bulls are out in full force again following a pause in the stock market. Investors were initially spooked by the fear of interest rates moving higher in the first quarter of 2015, but that appears to have been pushed to the backburner now as the stock market rally reignites. The thing is there are few real alternatives to the stock market—unless you are happy with the 2.42% yield on the 10-year bond. Personally, I would rather invest in dividend paying stocks. There’s nothing spectacular about the stock market and economy at this time. Things seem to be moving just enough to warrant buying an ... Read More
The housing market continues to show growth and offer a good buying opportunity. While the major upward push in the housing market may be behind us, I still see opportunities. As long as interest rates and mortgage rates remain relatively low, you can expect the support for the housing market to hold for the next few years. While housing starts and building permits numbers continue to be fairly strong, the National Association of Homebuilders (NAHB)/Wells Fargo Housing Market Index (HMI), which reflects the confidence of the homebuilders, increased to a healthy reading of ... Read More