Buyer Considerations – Number One Stock Pick of 2012: Buy Real Estate!
Every day seems to bring a little bit better economic news. This is an important trend to track because at some point the culmination of more and more good news will help spur a major turnaround in real estate.
Last week stock rallies was no exception. The DJIA rose more than 200 points, or 1.6% for the week, to close at 12,862. News that the European sovereign debt crises is maybe improving and that the US economy is expanding, helped drive the rally. Over the past 10 weeks, the NASDAQ was up 19% and is now at its highest level since May, 2000. This increase was also a result of the US Labor Department reporting on Friday, that non-farm payroll rose by 243,000 last month, the biggest gain since last April. The jobless rate also dropped to 8.3% and is now at its lowest level since February, 2009.
So, Last week’s rally was driven by:
- DJIA rise of 200 points
- NASDAQ up 19%
- US Labor Department reporting the non-farm payroll increase
- Unemployment rate dropping
- US economy expanding and European debt crisis improving
The only sector that has not yet shown signs of recovery is the housing sector where home prices continue to fall. If every significant indicator continues to improve, it’s almost a given that housing could turn around, and quickly at that. Perspective buyers that have become used to cheap housing and plenty of inventory to select from may be in for a rude awakening. Just as all the handwriting was on the wall in the mid 2000’s, indicating that the housing bubble was about to burst, so too is now the handwriting on the wall that:
The beginning of a great real estate recovery is just around the corner. Buyers that take advantage of low prices and great selection, will be glad they did!