According to Liz Ann Sonders, Chief Investment Strategist for Charles Schwab & Co., Inc., housing appears to have hit bottom and there are signs that it is beginning to improve again. More importantly, Sonders says, “housing is becoming ‘local’ again.” In addition, Sonders points out that renters are driving the recovery, not buyers.
“During the real-estate bubble’s inflation and subsequent bursting, housing could be analyzed nationally and somewhat monolithically. The rising tide was lifting all (house) boats, and when the tide went out, it took everything with it. But what we’re beginning to see is a broadening of conditions, with a widening spread between the have and have-not regions of the country. Another theme of the real-estate recovery is rent versus own, with a sharp bias recently toward the former.”
“There are many reasons for my budding optimism about housing: