One crisp fall Sunday afternoon under bright blue skies, my wife and I visited five homes up for sale. We remembered them by their street names: Big Acre, Blue Silo, Pontiac, Prairie Rose and Lamont. The lineup has a poetic ring to it, but the real music is the potential rates of return from owning them and renting them out.
This was the second weekend we went hunting. It’s been a fascinating experience so far, and what I’ve found tells me the housing recovery is not too far off, despite all the dire talk to the contrary. The investment implications are many and varied.
Being bullish on housing is a contrarian view. In a recent national survey, 37% of homeowners say they think buying a house is a “risky investment.” And 86% think prices will either stay flat or fall.