Month: April 2013

Nightmare on Main Street–Part II

ICangles Investment Post…

Real estate is back. Across many regions home prices are rising. Many continue to look at real estate as a good investment. With yields from bonds and CDs at their current low rates, investors are being attracted to the ability of a real estate investment to generate income. In addition many believe that the sell off in real estate driven by the Great Recession has created some relative bargain buys. Even more importantly the comeback in real estate is helping to drive broader economic growth. Wall Street is also getting back in the game. So far this year banks have issued more bonds backed by commercial mortgages than they did at this point in 2005, and institutional investors have become a powerful buying force, accounting for example as much as 70 percent of buying activity in some Florida markets. But are investors getting ahead of themselves? Will the good times continue? Or are investors being lured back into a market that has the worst still to come?