As per usual, the best one can say about the “news” as to whether now is a good time to invest in real estate is at best confusing, at worst deliberately so. But there are some indicators giving an idea as to when and at what price is a good time to consider re-investing in property. Ignoring the obviously “spun” headlines from the government press release farms such as The Times, these are a few recent, factual articles that might be of interest as it would appear that the commercial real estate bubble is now starting to burst – and as predicted will have an impact on the credit availability in the residential sector.
Bloomberg, The Times and all the other major newspapers are apparently shocked thta there was a drop in US housing starts in April. According to Bloomberg yesterday:
U.S. stocks declined as banks fell after Moody’s Investors Service said commercial property values plunged and Home Depot Inc. retreated following an unexpected slump in housing starts.
And the Times ran with a similar lead in, which is entertaining because in March they reported “an unexpected rise in new home sales,” which apparently heralded “the first tentative signs of economic “green shoots.”
More on Unexpected drop in US housing starts says Bloomberg and The Times
