InvestmentU.com: The Housing Chill Is a Bear, Not a Bubble
March 14 2006 - 7:30AM
PR Newswire (US)
NEW YORK, March 14 /PRNewswire/ -- There's no question about it:
the U.S. housing bull market has turned into a bear. New home sales
have dropped to 2004 levels and are continuing to decline. Price
hikes have slowed. Buyer cancellation rates are up 30% in some
areas. What's more, many potential homebuyers can't afford the
price of a new home; they're opting to rent until the market
bottoms out. This may sound like grim news, indeed. But is the
housing market bubble about to burst? No. "It's a slowdown, not a
collapse," says Dr. Mark Skousen, Chairman of
http://www.investmentu.com/. "The housing market has slowed for one
simple reason: Prices are simply too high for most investors to
find any value in the housing market," Skousen says. Investors who
flocked to real estate just a few years ago have curbed their
appetite for rental units because cash flow from rents doesn't
cover exorbitant mortgages. But Skousen is among a small cadre of
economists who think the real estate trend will be helpful to
investors. He says that within the next two years, the real estate
market could reward patient investors with some great deals. "This
doesn't mean buying a foreclosure," he says. "It means taking the
time to uncover real bargains, below their current market price."
In fact, Skousen remains a long-term bull on real estate, for the
following reasons: - Superior tax advantages - Unstable
geo-politics - America is for sale. Foreign investment continues to
grow. http://www.investmentu.com/, an educational investment
e-letter, brings dynamic market information to more than 300,000
subscribers each day. For more information about our editors, or to
set up an interview, please contact Juan Munoz at 410.223.2693 or ,
or visit http://www.investmentu.com/. Available Topic Expert(s):
For information on the listed expert(s), click appropriate link.
Alex Green
http://profnet.prnewswire.com/ud_public.jsp?userid=512401 DR Barton
http://profnet.prnewswire.com/ud_public.jsp?userid=512403 Karim
Rahemtulla
http://profnet.prnewswire.com/ud_public.jsp?userid=514503 LOU BASS
http://profnet.prnewswire.com/ud_public.jsp?userid=514504 Horacio
Marquez http://profnet.prnewswire.com/ud_public.jsp?userid=514521
Steve McDonald
http://profnet.prnewswire.com/ud_public.jsp?userid=514527 Julia
Guth http://profnet.prnewswire.com/ud_public.jsp?userid=514531 Dr.
Mark Skousen
http://profnet.prnewswire.com/ud_public.jsp?userid=10012420
DATASOURCE: InvestmentU.com CONTACT: Juan Munoz of InvestmentU.com,
+1-410-223-2693, or Web site: http://www.investmentu.com/
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