Should You Gamble On The Ailing Housing Market In 2012?

1
Should You Gamble On The Ailing Housing Market In 2012?

The U.S. housing market is like a case of good cop/bad cop.

The good cop softens you up with record-low mortgage rates and a huge supply of available houses.

The bad cops — risk-averse lenders —  have tightened their loans and require bigger down payments along with stellar credit.

This Value Fund Generated Significant Alpha In 2021

InvestGrizzlyRock Value Partners was up 34.54% net for 2021. The fund marked 10 years since its inception with a 198% net return, resulting in an annual return of 11.5%. GrizzlyRock enjoyed 14.8% long alpha against the S&P 500 and 26.9% against the Russell 2000. Q4 2021 hedge fund letters, conferences and more The fund's short Read More

This push-pull scenario is likely to continue in 2012, say U.S. housing experts.

The National Association of Realtors forecasts a rise in home sales of 5 percent, to 4.5 million in 2012, but at the same time, “[growth] is a slow, gradual process. It’s been frustrating,” says Walter Molony, National Association of Realtors spokesman.

“It’s tough to get a mortgage. People have to pay attention to their credit scores.”

In December, the Wall Street Journal reported that a number of hedge funds, including Caxton Associates LP, SAC Capital Advisors LP and Blackstone Group LP, have been investing in the housing market. If you’re in the market for a house, why wouldn’t you want to buy one at a bargain price?

Housing markets with strong local economic conditions and job creation are generally doing better. The 10 best performing states are North Dakota, Wyoming, Minnesota, Alaska, Nebraska, Utah, Virginia, Colorado, Kansas and New Hampshire, based on LendingTree’s State Recovery Index from December that looks at six elements influencing the housing market, such as unemployment and home/rental vacancies.

For cities, a Clear Capital report released last week predicts the five best-performing metro areas will be Orlando and Miami in Florida; Bakersfield, Calif.; Washington, D.C.; and Phoenix, Ariz.

Updated on

Sydra is our content manager. She also is in charge of Search Engine Optimization of posts and pages. She is generally the person behind curtains who visualizes and implements the Social Media Strategy of the website. Sydra is one performance-driven, insightful individual, who is an important asset of our team. She holds a Bachelors of Business Administration from IU (Iqra University), one of the top universities.
Previous article GAURAV GOENKA: VALUEx India Participant Sharing [VIDEO]
Next article A Ringside View of the Pharma Industry

No posts to display