Perhaps one of the more unique aspects of this recent housing slowdown was the entry of investment funds entering the market and buying up inventory. It looks like despite the price rise, these funds still see either good returns and/or good potential for capital gains in the US market. For the full story on Blackstone and their continued buying in the US real estate market, check out the link here.
[Edit] 7/18/2013, John Paulson, a hedge fund manager who made a fortune betting against the market when everyone was buying real estate in 2006 and 2007, says now is the time to buy. The see more check out the link here.
[Edit] 7/22/2013, Personally, I still believe real estate at this time to be a good investment, however recent data suggests that speculative buying (short term investors) might be waning. Check out the link here. The article cites rising interests rates as a reason. I believe this is a good development for the housing market in my area as it moves back to a more “organic” growth based on actually demand from home buyers instead of the intense run up in prices and frenzied buying by investors.
[Edit] As a follow up to the paragraph about organic growth i the housing market, I am bullish about the housing market in the long term because there are approximately 2 million 18-34 years old still living with parents as a result of the high unemployment rate. I find this trend especially prevalent in the Orange County / coastal California market, where home buying and renting is significantly higher than the rest of the country. As the economy slowly but surely recovers, this demographic will likely be in the market for a home, be it buying or renting. To read more, check out this link.
And here is a fun little map to mess around with to see how certain cities/states are faring in the current market. Click here.
