Real Estate Trend Update And Self Directed IRAs

The Sept 2012 housing starts numbers are out and they show a significant change of 15% month to month change. Before everyone starts singing Happy Days Are Here Again, these numbers need to be put into proper perspective.

First of all this is a very large number the likes of which have not been seen in quite some time. It could be a anomaly. The statistical margin of error for this numbers is 14.2%. This means that the series has the potential to be off and may prove so with the revisions over the next two months.

Another issue to keep in mind is that potential home buyers are still under significant restraint due to the inability to get lending for homes.

That being said, the data in chart 1 shows that we do have some support levels and are beginning to show an upward trend.

Chart 1

What does this mean for real estate in self directed IRAs

Any self directed IRA real estate investors that have purchased property ion the last 1-2 years, should take some solace in the fact that we seen to have formed a bottom with support in the real estate market. This does not necessarily mean that prices have settled, but there is some correlation. Stability means that inventories are moving, which means there is demand there and liquidity is improving.

For those self directed IRA real estate investors looking for a buying opportunity, this has to be the time. As we’ve discussed in prior postings, QE3 is alive and well, stock market confidence is low, fear of inflation is high, gold prices are moving up, and the strength of the US dollar is as debased and weak as ever. All of these factors paint a picture in support of hard asset investing.

Recommendations for self directed IRA real estate investors

Holding investment real estate is still highly recommended for inflation hedge and income and asset appreciation.

Enter into trust deed arrangements is still very good. Liquidity is still tight. Demand is still there.

Disclaimer: The information provided is for educational purposes only and are not a solicitation or offering of an investment, investment advice, or tax advice. You should consult with your tax, legal or financial advisor to determine the suitability of any investments made with a self directed IRA account.

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