House prices have been turbocharged by cheap credit over the last five years. The recent cycle has been historically long, prices are at historically high ratios and credit is at historically very high levels.
Prepare for prices to dip then flat line for the next three years.
The ROA will be @5% or less for those without mortgages. Unfortunately houses aren't very liquid. You can't just move your capital to ING.
I got out of property three years ago. Too early as it turns out but the returns from other investments have been just as good and I wouldn't want to be selling now into a falling market.
I'm down about $300K ytd after I recouped about $75K on AFG and CNP is going to take care of the rest. Thank you CNP!
