Pimco’s Mark Kiesel says he’s “back in” the housing market after renting the past six years. Kiesel sold his last house in 2006, when he was presciently concerned that the US housing market was in a bubble.
He admits that headwinds remain, but believes that fundamentals have improved to the point of making housing attractive once again, especially with respect to renting:
U.S. housing fundamentals have improved significantly from six years ago, led by lower prices, record low mortgage rates, improving inventory and delinquency trends and a gradually improving labor market, which in combination are helping homebuyer confidence and potential demand.
PS – He neither confirmed nor denied that our recent Contrary Investing housing piece was the real inspiration for his home purchase.