I think people (with funds to invest) are looking for better returns, and with your traditonal “safe” investment being pidly 1,2,3%…People are just itching to take on slightly more risk for slightly more return.
And for that, some people think it’s RE..
For most people, putting money into the stock market is still to risky and volatile and while we were seeing decent returns this year on boring indexes (11-13% ), it’s not something that necessarily is sustainable each year…
So I don’t see this changing…People are saying once rates go up on mortgages, home prices will crater. I’m not so sure…So many factors….My gut tells me it depends on how RE performs relative to other things… For instance, if the equity markets tank, people will probably still be looking at RE as good bet. Risk/return for most people on stock market is still too high I think…
