In an interview last year with the Financial Post, Brookfield Residential Properties’ CEO, Alan Norris, said, “We’re just at the beginning”. Referring to the recovery of the U.S. property market, this North American company is finally starting to see contributions coming from both sides of the border. As the second best performing home building stock in the United States, Brookfield shares soared a massive 113% over 2012, according to Bloomberg America’s Home Index.
David Baskin, of Baskin Financial Services in Toronto, Canada attributes this to a reduced level of stock. “You have a classic situation of demand building up again from new entrants in the housing market, the banks starting to lend again, and no supply. So no surprise, new homes are being built and prices are recovering in some depressed markets.”
This doesn’t mean that housing is back to reflecting true market value; in fact, plenty of opportunities still remain. In the same article British property economist Paul Diggle commented that, “the U.S. housing market has fallen so far it looks cheap.” However, agreeing with Norris, he too pointed out, “We’re at the start of a multi-year recovery.”
With low prices that are set to rise, doesn’t it smart to invest in property now?