NAR Touts Housing as Investment

Despite the turmoil in the financial markets, housing is still a solid investment, according to the National Association of Realtors.Citing falling Treasury yields, NAR president R. Layne Morrill said 30-year mortgage rates should also decline further and make financing a home even more affordable. "Consumers looking to buy homes are definitely coming out ahead," Mr. Morrill said. Stocks have outperformed housing in average annual growth over the past 20 years, but housing prices have shown consistent appreciation, while stocks have experienced wide swings in value, he said. Moreover, Mr. Morrill pointed to the leveraging that results from the fact that most homebuyers use their own money to cover only 10%-20% of the purchase price. "This leveraging of borrowed funds gives housing a return far in excess of the market's appreciation," he said. The NAR's website address is http://www.realtor.com.