From Real Estate Journal
Every real-estate investor is a gambler. And over the past few years, just about anyone who bought a single-family home on either coast, where prices have been appreciating at double-digit rates, has been a winner.
But single-family homes aren’t likely to keep appreciating at such a blistering pace. Prices of both new and existing single-family homes fell in December, marking the end of the national housing boom. Dave Seiders, chief economist of the National Association of Home Builders, predicts home prices overall will increase 6.5% in 2006, about half the gain they made last year, and will slow even further, to 4.4%, in 2007.
Meanwhile, experts predict a brighter future for multifamily properties, which includes both for-sale and rental units. According to Mr. Seiders, “multifamily is doing well.” McGraw-Hill’s Construction Outlook 2006 report says that multifamily housing starts are expected to rise 1% over the coming year, while the “the sharp rise in housing prices in certain markets,” the report says, “provides room for rents to move up.”