While the talking heads are still pooh-poohing real estate as an investment option, recounting tales of woe and blood in the streets, it seems to us at American Monetary Association that it's the very best place to be in the current economic climate. Sure there's been a bubble burst in some markets and that whole foreclosure tidal wave has yet to play itself completely out but we'll take our chances on property before we'd offer a single red cent to a Wall Street currency-based asset.

The problem with anything based in currency is that the dollar is well on it's way to being used to stock Monopoly games, thanks to inflation. To experts like Texas rancher, Mike Castleman, those with boots on the ground see a different real estate story than is being portrayed by the national media. Here's what he had to say (courtesy of CNNMoney.com):

“I'm a dirt-road economist who sees what's happening on the ground, and in 35 years I've never seen a shortage of new construction like the one I'm seeing today,” declares Castleman. “The talking heads who are down on real estate will hate to hear this, but America needs to build a lot more houses. And in most markets the price of new homes is fixin' to rise, not fall.”

At age 70, Castleman has seen a few things. His company, Metrostudy, has tracked new home construction and real-time inventory for the past three decades. Take Castleman's word for it and take our word for it. Housing is back due to two fundamental factors. First, the number of new housing starts is historically low. There's nowhere to go but up. Secondly, the bloodletting is complete, for all practical purposes, with just a few arterial sprays left. Prices have fallen drastically, as much as 55 percent in the hardest hit areas.

With the foreclosure crisis bringing an estimated six million new renters to the market in the next six years, we'd say all signs point to the wisdom of making a real estate investment now.
The American Monetary Association

Flickr / Dustin Ver Beek