US Real Estate-an alternative investment opportunity

Following the market collapse way back in 2008, the real-estate market experienced a rough patch which persisted until 2011, as investors lacked confidence of a possible positive U-turn. Investors’ pre-assumptions were based on the fact that the industry would struggle to recuperate, primarily due to high levels of unemployment.

In the first months of 2012, the Housing market began to gain confidence as investors commenced dipping-in the market following the crash which had led to depressing prices.

In fact, the S&P/Case-Shiller 20-City Composite Home Price Index, which measures changes in residential house prices in 20 metropolitan regions in the United States kicked-off its ascending momentum. From 2012 till-date the said index locked an appreciation of 38 per cent. The enthusiasm towards the sector was also supported by a low mortgage lending rate.

The current scenario

This week’s released data showed that purchases of new homes surprisingly dropped more than forecast in January as signed contracts plunged primarily in the western U.S., mostly since May 2010. As opposed to December 2015, in which sales were noted at an annualized pace of 544,000, the strongest in 10 months,...