The Real Estate Year of the Investor

Why should you invest in Real Estate this year?  Simple there are changes coming down the road that are going to change the market, again.  Last week I wrote about the Falling Dollar and how inflation will creep up on us if we are not careful.  This mean we will see pressures on interest rates.  According to Economists' Outlook, National Association of Realtors is forecasting that the interest rates by the end of 2011 will be back up to 5.6%.

So what does this mean? 

Looking at the Buyer Composition Graph to the right, it is the Real Estate Year of the Investor.  With prices being reasonable in the Real Estate market place and financing, those who have the money or can borrow are going to clean up.  

Don't get me wrong; since this siutation has happened once, it may happen again.  However, I hope it does not for the security of homeownership.  Homeownership is an invaluable asset to our economy and national identity.  We should learn from this time period.  We cannot take for granted that home prices will constantly increase.  This is a precious investment.  A home is much more than property or a house.