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Resource Real Estate Global Portfolio Manager Scott Crowe on strategies for investing in the housing market.
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New home sales unexpectedly falling last month dropping more than seven per -- But December's drop didn't put a big dent in -- sector in 2012.
New home sales -- its first annual gain since 2005.
Well now we have someone -- real estate plays to help you cash in on the rebound Scott -- Is resource real estate global portfolio manager of first gotta gotta take issue grabbing at least we have to question whether or not this is downward trend will continue Bob Shiller.
From the short case index he knows real estate pretty well he has he says there's going to be more more falls to comment pricing he says it could go quite a bit lower.
From where it is now by the -- socialists say it is it big could be more weakness I think what he's trying to size does not get too far ahead of ourselves intends a figure on the costs.
All of and you've -- -- house problem what what -- let me be specific what he was saying was that most of the mortgages right now and America are being supported by the government.
And that's it that's sort of there's an irrationality about that an artificial reality about that that's troublesome -- we wouldn't disagree with that that we think housing has bottomed.
If you have a look at the fact that new home sales were up 20% year on year -- -- -- -- it would dent in the cinema.
-- levels of back to pre crisis levels and higher prices for existing -- are actually up 12%.
But all that being said with completely including -- -- with the idea that -- and prices are going to be in a -- very slow and gradual recovery from here is gonna take years.
So this drop that we saw on December the news we got today that the sales fell over new home -- over 7% that's not.
Get a throw this recovery off is what percent and basically it's but it does remind us is is a slight prices so what what he's wondering now how where do you put your money if you're willing to bet like you are.
That this is the -- What we actually like commercial real state that -- -- single family for a couple of reasons it has.
The low interest rates support without a lot of headaches and other issues of the artificially.
Supported market that we see in the single family housing.
We have a couple places here in the US -- by the apartment rates we think they gonna benefit from a -- recovering housing is more more people are gonna rent.
There's a -- consider -- in this country and that's good for apartments.
I don't know.
Outside of the United States you've got an Australian accents in I mean are they're good place to be looking at outside of the US right now yeah I think -- -- there's a there's a few opportunities.
Internationally.
Los she moved to a very interest in Asia unfortunately that -- has done quite well so if you wanna find the best -- you've -- -- getting your.
You can understand why countries in particular it will obviously Western Europe markets like fronds Germany.
And -- -- -- does without the problems away from the creek -- that.
If you when you guys got beaten down market like Portugal what anything that you need to go that far if you go to Europe -- looking at valuations that you now have 30% 2030% discount that product market valuations intends of how the REIT stocks surprised.
Verses at our premiums here in the US.
And you can get some very good quality companies have that Western European exposure up with long leases and you know actually have to get a brain -- can put to -- -- about.
They can about -- -- first somebody's got a couple billion dollars in the real estate market what the average investor would you recommend that they eat.
Get involved in these planes -- They can get involved through the listed sector groups like results realist I like ourselves and others provide.
Global real estate funds where investor can gain for a few thousand dollars and get exposure that they -- -- markets and -- -- have been investing full.
Scott -- good to see you thanks very -- every weekend.
