This report is a few days old buy thought I would highlight it for anyone who missed it. It has been my thesis that the housing market in the US is improving, albeit grudging slow to some. If the housing related stocks provided an opportunity (outside of just chasing performance), I think I would be all over them. The improvement seems to be driven by a combination of investor demand looking for rental income and a slowdown in distressed homes forced upon the market.
As Corelogic writes...
The full report can be found here.
As Corelogic writes...
- Rental income produced from residential properties increased 12 percent year-over-year in September 2012. The rapid growth in rental income is a byproduct of fundamental shifts in the housing market, driven by a large increase in affordability of investment properties and rising rents.
- Heading into 2013, the trend in overall rental income will likely reflect tightness in the single-family rental market and a continued rise in rental demand given weak wage income and job growth.
- The real estate cycle is now producing residential investment that is contributing to economic growth in line with post-recession history.
- Lenders have returned to more sustainable loan products and remain cautious in extending credit to only the most qualified borrowers.
- Overall market uncertainty can be reduced further by a reduction in mortgage risk, investment-driven economic recovery and further clarity on housing policies, leading to more sustainable profits and outcomes for real estate and housing finance.
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