From a psychological/contrarian standpoint, I’ve noted quite a few bearish articles in the mainstream and financial press of late. These articles appear aimed at engendering a bearish attitude among the public, and this is obviously bullish from a contrarian standpoint. One headline in a major daily newspaper read, "Real estate on shaky ground?" Another major news wire story emphasized that lots of homes are coming up for sale right now and suggested that supply is about to outstrip demand in the housing market. The press is advertising a bearish real estate market and this can only mean one thing -- the bull market in real estate is poised to continue.
I might also add that Hurricane Charley will most likely be a boon to coastal real estate markets. That’s right, major hurricanes are usually followed by renewed bull markets in coastal property values and home building once the clean-up and recovery periods have ended.

Says a Rutgers professor interviewed by USA Today, "There’s no stopping the trend. It’s like the primordial urge of sea turtles (to lay their eggs in the exact same spot), the instinct to live near the water is that strong."
The article goes on to state that demographically, middle-class baby boomers (people ages 37 to 56) are driving the demand for second homes. More importantly, the article emphasizes the new trend towards homes as investments. Writes USA Today, "Major stock market indexes declined in each of the past two years. Meanwhile, home prices in almost every market have been climbing strongly upward. The longer these trends continue, the more likely it seems that people will choose to invest in real estate rather than stocks."
The real estate boom is now inextricably linked to America’s economic stability. A rising real estate market are now part and parcel with a stable economy and rising financial markets. Simply stated, the Fed will not allow the real estate market to collapse at this point in time. As I’ve stated many times in the past, until the global economy is fully integrated the U.S. -- the world’s chief economic engine -- will NOT be allowed to slip into serious recession, will NOT be allowed to see its stock market crash, and will NOT see its housing market demolished. We are still a few years away from this goal of world economic/political unity, therefore the real estate boom continues apace.
Vollständiger Artikel:
http://www.kitco.com/ind/Droke/aug232004.html