Ask an expert: Time to invest in housing?
MSN Money's Charley Blaine explains what the latest reports mean and whether it's safe for investors to move back into this sector.
In this video, MSN Money's Charley Blaine explains what's behind the reports, whether it's time to start house-hunting and where the smart investment is in a recovering housing market.
The housing bubble burst left many investors cautious about the market. It's no wonder. After peaking in early 2006, housing prices were decimated across the U.S., in some areas by 50% or more.
That left many homeowners with negative equity and underwater mortgages they could no longer afford. Foreclosure rates skyrocketed, and families were left homeless.
But now the market is finally improving.
As Blaine explains, even though both new housing starts and existing home sales show that the rebound is gaining traction, we're still just beginning to recover.
However, because we're still in the early stage and the market isn't booming yet, this is the time to go house-hunting.
And for investments? Blaine recommends looking at housing and housing-related stocks such as Home Depot (HD) and La-Z-Boy (LZB), as well as homebuilders' ETFs. But he also warns investors there's a bit of a sell-off right now.
The discussion about the housing market, house-hunting and investing in this sector continues over in MSN Money's Facebook community.
MSN Money on Twitter and Facebook@msn_money and @topstocksmsn
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I don't understand a housing comeback when there are more people out of work than ever. Government jobs numbers are false and as obamacare looms that will even get worse.
Are these stories just too jack us up and make us feel better?
You mean all the bank owned homes (Dang near all the homes trying to be sold) are only being released in groups so all the hard working people with decent jobs and decent credit can play a bidding war with investors and pay double to triple what a house is worth then yes the housing market has come back. Yay greedy people.
The houses for sale in my neighborhood either got bought then immediately put up for rent or the sellers gave up selling and put them up for rent.
Either way, I'm glad to see the for sale signs dissapearing. If only they can get the renters to mow their lawn every once in a while.
Wonder if the banks that are holding all of the foreclosed homes have been paying the property taxes or do they get an exemption from the gov. Might be a good story for a hungry journalist.
With the higher credit/income requirements to get a loan now it's crazy how much money people have to pay to rent a house in my neghborhood that they could buy with a monthly payment of 1/4 to 1/3 the rental price. Assuming a 30 year loan. I know owning a home has a lot of costs and additional responsibilites associated with it and it isn't for everyone but it's crazy that you can buy for $450 /mo but the rent is $1000-1200 /mo. You can repair a lot with that price difference.
Housing Market has not come back. It looks good on paper. Are we a nation of 'believe everything we read" ? Housing market tanked. More homes in the market since the real owners either on the street or sleep under bridges. The new owners have bought homes for 50 to 60% of the value. Equity lines are gone for ever. Yes, market is picking up when you pay half the value and trying to sell it for 10% profit the next month. Thanks to TOP 5 Banks and forclosure attorney's, using our own (tax payers) money to write their own agenda (guidelines) until they take over your HOME and life savings!
The housing market has come back some, but nobody working in the construction industry is making anything close to what they were before the crash.
Home values haven't come back, and until we kick the illegal's out of here our wages aren't going to come back either.
The same people who were responsible for creating, causing, preventing, and reporting on the worst financial collapse since the Great Depression are at it again. None of the criminal shyster politicians and banksters were arrested, prosecuted, and jailed. Nothing has changed. They are all still in charge. The game remains the same.
Anybody who jumps back into the housing market this time, deserves everything happens to them. This time is not different. They should know better.
"Has the Housing Market Finally Come Back?"
If you have to ask, then it probably has NOT.
Those who waited for the bottom to hit before buying waited too long. We wont see prices as low as 2 years ago for about another 15 years. You outsmarted yourself.
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