Real estate investors are likely suffering from financial whiplash after the wild rise and fall of home values over the last 10 years.
The beginning of the last decade saw an unprecedented spike in real estate prices, which culminated in the bursting of the real estate bubble in 2006 and a financial crisis to boot. Then came the crash, and prices fell precipitously, with the Case-Shiller Housing Index losing 33% from its 2006 peak to the 2012 trough. But nearly just as quickly, investors flocked back to real estate as they realized that getting in at the bottom could be a great source of profit. Since the beginning of the housing recovery two years ago, the Case-Shiller index has regularly shown the national real estate market getting more than 10% pricier on a year-over-year basis.Read More