Tags: Case | Buy | House | home

Karl Case: ‘It’s a Terrific Time to Buy’ a House

By Dan Weil   |  

Home prices have registered a huge drop since the real estate bubble burst in 2007, falling 3.4 percent in the year through October according to the S&P/Case-Shiller Home Price Index.

But Karl Case, economics professor emeritus at Wellesley College and co-founder of the index, says that despite negative consumer sentiment toward home ownership, better times may be ahead.

“People are discouraged and fearful,” he tells The New York Times.
_________________________________________________________

Sick and Tired of Playing Retirement Roulette?

Fleeced by uncontrollable inflation, taxes, and dire unemployment, millions are being forced to dangerously gamble their life savings in the . . . Learn More About How You Can Protect Your Life Savings, Click Here.

_________________________________________________________


“They’re moving in with their parents. People thought home prices would never go down. We now know that they do go down, and you got hammered if you were overleveraged.”

And the fear now is that home prices will never rebound, Case says. But he sees signs of light.

homesgetty200v4.jpg
(Getty Images photo)
“Household formation is increasing and the vacancy rate is dropping,” Case says.

“Housing starts are at a 60-year low, and they’ve been there for three years. That’s unheard-of. We’re starting to see some signs of an increase in value.”

For those looking for a place to live, home prices are compelling, Case says. “If you’re buying a house or apartment to live in and pay for over time, and can afford the payments, then it’s a terrific time to buy.”

Hedge funds now see value in housing as an investment. "We turned bullish on housing. A rebound is coming," Andrew Law, chief investment officer at hedge fund manager Caxton Associates, tells The Wall Street Journal.


© 2015 Newsmax Finance. All rights reserved.

1Like our page
2Share
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved