Housing Prices and REITs 2014-2017

[Jason Merchey]

The local real estate market is looking pretty good for me into the future I think, or at least, better than average. I do worry a bit about Blackstone or whatever that huge REIT is (is that the right word?) and the number of purchases being made with cash (indicating investor activity). Of course, things like rising interest rates, the shrinking middle class, and the strength of the dollar as the investment of choice around the world are concerns too. But specifically I am wondering, do you think it's a good time to make a buy/hold purchase on a property that will cash flow with 25% down, or do you imagine that the market has no place to go but down in regard to prices due to the fact that eventually those big REITs are going to want to sell off their purchases. I guess they would probably sell for market value, but are they going to flood the market, increasing supply to the point that prices flag?