Time to bet on housing?

This article comes from the On The Block blog at SFGate.com

Everyone has their predictions for where the housing market will head in 2012.  Some are still pessimistic and see no stop to the declines ahead but others are singing a more positive tune, including many on Wall Street.  Some prominent hedge funds as well as big name bank Goldman Sachs are putting on a bullish bet that housing will rebound, according to the Wall Street Journal.

Hedge funds run by Caxton Associates LP, SAC Capital Advisors LP, Avenue Capital and Blackstone Group LP have been buying housing-related investments, betting on a rebound. And formerly bearish research firm Zelman & Associates now predicts a housing pickup, as does Goldman Sachs Group Inc.

Along the same vein, home building companies are also getting a positive vote of confidence from investors.

Other investors seem to be making the same bet. Shares of home builders are up 30% since the end of the third quarter, as measured by the Dow Jones index tracking those shares, topping a nearly 10.5% gain for the Standard & Poor’s 500.

The folks in this bullish camp are citing pent-up demand in residential real estate for their optimistic outlook.

Is 2012 the year for a housing to end up in the black?  How are you betting?


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