The government wants us to think that the only thing that won’t be affected by tumbling off the fiscal cliff is the housing market. It’s stable, it’s a safe investment, and whatever recession might come it won’t touch your real estate investment.
What do you think? Are you going to count on that?
The Federal Reserve is betting their money on the housing market, pumping $40 billion monthly into mortgage-backed securities. And foreclosures are down and prices have risen almost 11% since last year.
I think these gains are impressive and I like to see people committing to a good thing. But I’d still caution everyone to think ahead a little bit. Don’t assume that the recovery can’t be shaken. Don’t pretend that our government, employment, recession, and a million other things can’t drive prices back down.
But if you need something to believe in, then believe in this. You’ve seen the recovery get started, right? So if you see prices drop, that’s the time to pour serious money into the housing market. Buy the next time prices are low and you’ll be raking in serious returns before this time next year.
Don’t believe me? Then speak up.