Home Builders, Real Estate Funds Head Higher Today
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It’s been a good week for real estate. Signs that the housing market is stabilizing are helping propel recoveries for home builders and for real estate funds on the financial markets. Indeed, investors are becoming interested in real estate related investments again in the hopes that they can get in now and catch a ride on the recovery.
Home builders are seeing an increase, thanks to recent data that housing starts continue to rise, and that the home builders confidence index has gained some ground. The Street reports on the success that home builders are seeing:
Rehaut says supply appears to be more manageable, while demand has begun to stabilize and even slowly re-emerge. “In such an environment, we believe the builders will once again demonstrate positive order growth — historically a powerful positive catalyst — and home-price declines will near their end, resulting in the abatement of impairment charges,” he wrote in a note.
While home prices are likely to continue to decrease — at least for a little while — they should be at the bottom quite soon in most markets, and are even rising in some markets.
Additionally, real estate funds are on the rise. The good news from the housing market means that REITs and other real estate funds are doing well. From ETFs to mutual funds that are heavy in real estate investments, investors are starting to take a look. These types of funds are also popular amongst folks without the capital to buy real estate. It allows them a piece of the action.
In the end, it looks as though real estate investing is likely to become popular again. Investors are banking on a recovery, even though peak housing prices are years away. If they can hold on to home builders and real estate funds for the next five to 10 years, they expect to make some solid profits.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.



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