There were two things I noticed today that affects real estate investors or those thinking of becoming one. First, stocks continue to fall and the Dow is well below that stubborn 18000 mark while the S&P goes negative for the year, joining the Dow. Greece is certainly partly to blame but there are other Stocks shaky. Home prices up yet againfactors such as the price of oil, weaker earnings and overall skittishness. There really are no major economic reports out this week that could provide some sort of compass for investors.

 

I also read today that home prices are still on the move higher. According to CoreLogic, the real estate data firm, home prices increased by 6.3 percent compared to the same period last year. In 10 of those states, they actually hit new highs. Housing bubble? Not so much but the higher prices are attributed to a limited supply rather than a frothy purchase environment. CoreLogic also said those in the survey who expected rental prices to go up in the next year hit an all-time survey high.*

Okay, if you’re an investor do you move your portfolio around to protect your equity or move your funds into low-yielding bonds? Real estate investors know there’s a third choice, rental properties and private notes. The concerns surrounding the Euro as well as closer to home in Puerto Rico have paved the way for more funds transferring into mortgage bonds, keeping financing costs low. This is still continued good news for investors. Low rates, higher home prices and higher rents. All secured by real estate.

*cnbc.com/ July 7, 2015