It’s widely known (and he’s written about it many, many times himself) that when Warren Buffett invests in a stock, he does so after thorough research, and for the long haul. Essentially, he ignores short-term news. We’ve reported several times recently on the strength of the housing market. Two new pieces of news are out this week, which point to a more dire picture. But take them with a grain of salt. “It’s tough to go on month-to-month data. Anything can happen in a given month like weather,” says Jim Gaines, chief economist at the Texas A&M University’s Real Estate Center.
The housing market seems to be increasingly in good shape, as this blog has reported recently. However, “in good shape” means different things to different people. The construction industry is booming, if you look at the number of housing starts. However, if you look at the number of completions, they’re substantially lagging — up only 3% on one-unit structures. And with completions growing at that slow of a pace, there’s likely to be upward pressure on home prices in the near future.
There was a time, not too long ago, where quite a few people took hauntings quite seriously. In fact, I seem to recall a lot of old movies where the basic theme was, some family got a house, cheap, because it was haunted. And that’s still true today in some cultures — but not in the U.S.A. “When it comes to real estate, a home’s haunted legacy can actually be a selling point,” reports Angela Colley for realtor.com. So, if you want more for your home, consider getting a ghost!
OK. So the economy is better. The housing market is in full recovery, if not possibly even in a bubble again. So, what gives with over 50% of all residential mortgages being held by Fannie and Freddie? (As a reference point, that’s up from 7% in 1981). As expected (and always), it comes down to risk. Why does it matter to borrowers? According to Laurie Goodman, the director of the Housing Finance Policy Center, because a lack of private backers could “lock borrowers who need larger loans or have less than pristine credit out of lending.”
OK. Last week we covered how to handle your house if you’ve gotten this close to the wire and aren’t yet ready for Halloween. But what good is it to have a spooky house if you yourself aren’t prepared to be decked out for the ghouls and ghoulettes? So, to help you out, here are four last minute costume ideas: