For those holding back from investing in a real estate, an excellent article by Spencer Jakab in The Wall Street Journal should inspire all to action.  Appropriately titled, "Fears of New Housing Bubble Full of Hot Air," it adeptly lays out all of the reasons why the housing market in the United States should continue rising.

With the American real estate market so strong, there is naturally a concern of another bubble.  The impact of The Great Recession on the real estate market still affects the outlook of many.  But the article by Jakab is a must read that should summon many to the real estate market to buy a house, pick up a vacation home, or look to acquire that rental property to help finance their retirement.

Jakab points out that much housing data reveals that the US housing market is still well below its peak before The Great Recession in his Journal piece.  As an example, housing starts are only about one-third of the peak in 2005.   According to Jakab, "Outside of a recession, starts haven't been this low since the mid-1960s when the U.S. population was less than two-thirds of today's level."

As with any asset class, housing in the United States is all a matter of supply and demand, as Jakab adroitly details.

Making the supply side of the equation even more compelling for real estate investing is that the last five years has witnessed a substantially reduced activity in construction in the real estate sector in the United States.  Not only has construction greatly fallen, but a record number of homes have been tied up in foreclosure proceedings. This all adds to up to what Jakab terms, "constrained supply."

On the demand side, there has been a change in sentiment.  More Americans are looking to buy a home again.  During The Great Recession, many were concerned about employment and did not want to take on the responsibility of a 30-year mortgage.  With the American economy recovering, more are feeling better about buying homes, vacation houses, and rental properties for high yield real estate investing.

"Jakab is 100% correct in his Journal piece," praised Jerry Cohen, Founder and President of EquityBuild, a real estate firm.  Cohen, who has been a principal in more than 2000 real estate transactions since 1984, furthered that, "There are many tremendous opportunities for home buyers and investors in turnkey properties, private mortgage notes, and other areas in many regions.  Chicago real estate is just one example of a market I see rebounding very strongly that still has a significant upside for buyers.  It is a great city with a great future for its real estate market."

As Jakab concludes his superb article in The Wall Street Journal, "There is still plenty of demand for the housing market's limited offerings before the word 'bubble' should enter the discussion."

                                                                                                         -30-