zondag 19 februari 2012

US Real Estate a Bargain?

On 20 January 2012, the National Association of Home Builders showed confidence in the housing market rose for a fourth month in January to the highest level since June 2007.

There are many reasons why I follow Marc Faber's market outlook and this is one of them. He is mostly right in his predictions.

A few months ago, Marc Faber told us that US real estate was a bargain. And look what happened, the housing market index improved. Housing starts also improved more than forecasted.
Housing Market Index

As a result the iShares Dow Jones US Real Estate (IYR) has been doing quite well over the last years.
iShares Dow Jones US Real Estate (IYR)

There has been evidence of houses in the US with multiple bedrooms, swimming pools, etc... that can be bought for only $US 150000. That is a real bargain if you compare that to where I live (Belgium), where you can only buy a medium sized appartment for $US 200000.

I don't recommend buying US real estate as I know interest rates in the US will go up. But compared to other countries (housing bubble in Belgium), real estate in the US is certainly not overpriced.

1 opmerking:

  1. This is really nice post. I agree with you that a home isn’t a dream home because of its room dimensions. It’s about how a person feels when he walk through the front door — the way he can instantly envision his life unfolding there. This is about more than real estate. It’s about his life and his dreams. It’s important that the agent we choose to guide us through this journey is our trusted expert and advocate. Keller Williams Realty guided me through my way towards my dream home and made it possible for me to choose a best home for my beloved family.

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