Real Estate Update – Housing and The Self Directed IRA

The recent housing starts for October 2012 shows a 3.6% improvement. The south and midwest regions of the country are showing the most robustness. The chart below shows the historical housing starts numbers.

Chart: Housing Starts

What we see if that the bottom has been formed with clear support. Starting in Jan 2012 we see the uptrend pattern forming. With the favorable numbers shown in October 2012, we are not seeing a pattern or trend that causing a break in the upward trend line.

Multi Unit Starts

The numbers also show that we are seeing upward trends in multi unit properties. The demand continues to be there to support the starts on such properties.

What these numbers mean for self directed IRA

As we have noted in previous updates, we believe a bottom has been formed in the real estate market. Prices appreciation is still tamped down. Demand continues to be strong for rentals and multi unit rentals. The economic recovery continues to be soft and delicate. However, barring a new major meltdown, which is possible, investment properties are ripe for picking up at low prices. We continue to support hard assets in your retirement portfolio. We still believe that real estate investing is good for those self directed IRA investors that do their homework on the right investment properties.

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