HOUSING IS STILL A GREAT INVESTMENT
A recent study conducted by the Homeownership Alliance, a national association comprised of 18 housing organizations, predicts that the U.S. real estate market will remain strong over the next two to five years. That’s good news for homeowners who are concerned over the rising costs of securing a mortgage loan.
The report placed little importance on possible increases in interest rates. The major factor that affects the stability of the housing market is the dynamic relationship between the supply of homes and the growth of our population. The children of baby-boomers are now having children, and a steady stream of immigrants are entering the country with dreams of home ownership motivating them to buy property.
With a long-term decline in the value of the dollar, dollar denominated securities such as stocks and bonds are not necessarily the most desirable investment vehicle. Real estate is widely seen by investors as a relatively safe place to keep money and hedge against inflation. The demand for rentals and owner occupied homes continue to compel investors to buy real estate above and beyond their primary residences.
Even if mortgage interest rates continue to rise, the demand for housing from a growing population should keep prices competitive and home sales dynamic. Dave Wallace is the President of Alliance Realty, Inc. in Ventura. He can be reached at (805) 644-1111 or email davewallace@start-packing.com. http://alliancerealtypros.com/community.htm