New York, NY (PRWEB) October 11, 2012
In a recent Investment Contrarians article, editor Sasha Cekerevac reports that August home prices were up 4.6% from a year ago, according to new data from research firm CoreLogic. He notes that this big increase in year-over-year home prices is the largest in six years, meaning that the housing market is off the bottom, supporting possible overall economic recovery.
Cekerevac explains that to buy such a large asset, buyers need to feel somewhat secure that home prices won’t keep dropping. He adds that while no one is looking for massive returns, having a stable housing market is extremely important in this economic recovery.
“While many believe the housing market is flooded with properties, the opposite is true …shortages of properties [are] driving up home prices, not only in this report, but from the homebuilders themselves,” states Cekerevac.
Citing the National Association of Realtors, he reports that the number of listed homes for sale was down 18.0%, noting that demand is clearly outpacing supply for now.
The Investment Contrarians editor adds that continued low interest rates are prompting potential buyers, who are seeing home prices moving up with cheap financing, to jump onboard.
But don’t get caught up thinking that the last decade’s highs in home prices will be reached shortly, warns Cekerevac. He expects to see millions of homes put up for sale as home prices continue to steadily move up, which is exactly what a good and healthy housing market needs: liquidity and ease of transactions.
“This bodes well for the economic recovery over the next few years,” concludes Cekerevac.
To see the full article and to get a real contrarian perspective on investing and the economy, visit Investment Contrarians at http://www.investmentcontrarians.com.
Investment Contrarians is a daily financial e-letter dedicated to helping investors make money by going against the “herd mentality.”
The editors of Investment Contrarians believe the stock market and the economy have been propped up since 2009 by artificially low interest rates, never-ending government borrowing and an unprecedented expansion of our money supply. The “official” unemployment numbers do not reflect people who have given up looking for work, and are thus skewed. They believe the “official” inflation numbers are also not reflective of today’s reality of rising prices.
After a 25- to 30-year down cycle in interest rates, the Investment Contrarians editors expect rapid inflation caused by huge government debt, and money printing will eventually start us on a new cycle of rising interest rates.
Investment Contrarians provides unbiased research. They are independent analysts who love to research and comment on the economy and investing. The e-newsletter’s parent company, Lombardi Publishing Corporation, has been in business since 1986. Combined, their economists and analysts have over 100 years of investment experience.
Find out where Investment Contrarians editors see the risks and opportunities for investors in 2012 at http://www.investmentcontrarians.com.
George Leong, B. Comm., one of the lead editorial contributors at Investment Contrarians, has just released, “A Problem 23 Times Bigger Than Greece,” a breakthrough video where George details the risk of an economy set to implode that is 23 times bigger than Greece’s economy! To see the video, visit http://www.investmentcontrarians.com/press.