Is there value in real estate market in U.S. (residential)? There are lots of noises, from government stimulus, FED subsidies on mortgage and foreclosure preventions. The market has been distorted. One most important measure, however, is the replacement cost. My sense the real estate value has fallen close or below replacement cost in lots of places, assuming labour cost, material cost and environment costs will stay relatively the same. Over long term, purchase a house right now in U.S. represents good value. I am not too sure about builders. Some of them may rebound but market can stay low for a while.
The market is having a down day today. I put an order in to close my HXD position @ 13.4 (bought at 12.98)
No comments:
Post a Comment