This article argues the consensus opinion that housing will take many years to recover. I tend to disagree with this consensus view. Because so few people are actually optimistic that housing will stage a significant recovery, I think the odds are actually quite good that it will happen. Psychology is essential so if sentiment is so bad, and housing is actually finding a bottom even considering that sentiment, the odds of a faster than expected recovery see quite reasonable. In the real world when the threat of increasing interest rates is prevalent, and friends and neighbors start dipping their toes in the water, the herd like mentality can indeed kick in. Renting is more expensive than home ownership in many parts of the country so it won’t take much more than improving sentiment to bring back the herd like mentality.
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.