The stock market is at four year record levels, manufacturing is coming back and we are seeing a lot of positive press on real estate. Real Estate has caught negative press for over 5 years now, it seems hard to believe that we are that far along but 2007, 2008, 2009, 2010, and 2011 have all passed.
Warren Buffet recently said, “If I had a way of buying a couple hundred thousand single-family homes I would load up on them.” Every day we learn of a new hedge fund that has plans to buy 100 million plus in single family housing. From a guy on the ground floor, like me, I have really noticed there really isn’t much inventory out there and everything that does make sense is being chased by tons of bidders.
All this news doesn’t mean the banks aren’t sitting on a ton defaulted loans, but we’ve been talking about that since 2008. I guess the real question is, how in control of the inventory are the banks/government? Have they limited the supply to heavily? Will they over correct and bring on too much inventory?
I have heard the average landlords last two years, I wonder how many people that seize the opportunity the news is talking about can handle being a landlord? I have more questions then answers, on the next couple of years, but I can say I am glad we started loading up on rentals in 2009.
Do you think 2012 will be the year that real estate starts going up again? Give me your opinion in the comments!