On 20 January 2012, the National Association of Home Builders showed confidence in the housing market rose for a fourth month in January to the highest level since June 2007.
There are many reasons why I follow Marc Faber's market outlook and this is one of them. He is mostly right in his predictions.
As a result the iShares Dow Jones US Real Estate (NYSEARCA:IYR) has been doing quite well over the last years.
iShares Dow Jones US Real Estate
There has been evidence of houses in the US with multiple bedrooms, swimming pools, etc... that can be bought for only $US 150000. That is a real bargain if you compare that to where I live (Belgium), where you can only buy a medium sized appartment for $US 200000.
I don't recommend buying US real estate as I know interest rates in the US will go up. But compared to other countries (housing bubble in Belgium), real estate in the US is certainly not overpriced.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.