Home prices are poised to rise and investors should buy now, especially those who qualify for today’s attractive financing terms, says real estate billionaire Donald Trump.
The housing bust helped throw the U.S. economy into the worst downturn since the Great Depression and continues to weigh on its recovery, though prices have fallen to the point that savvy investors should be out looking now.
“There are a lot of great deals out there, and I tell people who ask me ‘what should I invest in?’ I say go buy a house because the fact is it’s a great time to buy and I believe, strongly, prices are going to be going up,” Trump told CNBC.
Home prices nationwide crept up in the second quarter of this year from last year, the first such gain since 2007, according to a new report by real-estate firm Zillow Inc.
“They were a little up, but I really believe they are going to be going up very substantially over a period of time,” he added.
Markets in New York and Miami are doing especially well, Trump said.
While financing may not be available to everyone, for those who can get it, terms are very attractive right now.
The Zillow report showed that home values for the April-June quarter rose 0.2 percent from the same period in 2011.
Other industry metrics have shown month-on-month gains in home prices, though Zillow is the first to report an on-year quarterly gain involving comparable home prices in the same communities, which would suggest the housing sector is finally showing signs of life, The Wall Street Journal reported.
“It seems clear that the country has hit a bottom in home values,” said Stan Humphries, Zillow’s chief economist.
The fact that the gains came during a period in which the economy was not very strong suggests there is some fundamental organic strength to the housing market, Humphries added.
Trump: “Low Home Prices Poised for Gains, Buy Now”