Ray Vella / BW
Real Estate
Format: Residential and commercial properties, real estate investment trusts
WHAT HAPPENED IN 2005 The housing bubble didn’t burst, but it’s definitely losing air. With prices far outrunning income growth in many markets, what else could you expect? Rising mortgage rates are cutting away at affordability, too, something even creative financing can’t paper over.
OUTLOOK FOR 2006 Commercial real estate looks to be a better bet than residential, since businesses will continue to grow and their office needs must be met. One smart way to diversify risk is through real estate operating companies, or REOCs.