If you think ol’ Ken Clark is just unrealistically optimistic about the market, check out this very interesting article in the Wall Street Journal.

In Brief: 2011 will most likely be the turn-around point for the residential housing market.

Exhibit A: “Nationally, the cost of a house is the equivalent of about 19 months of total pay for an average family, the lowest level in 35 years.” This market will recover when people can start buying houses again. Given that there is  pent-up savings in America right now, and people are increasingly confident that they will keep or regain a job, they are more likely to get out and take advantage of the low prices.

Exhibit B: “Investors have started to buy up houses and condos, in some instances paying entirely in cash.” Well, we’ve seen that for a while here in Phoenix. I’ve been helping folks buy houses to use as investments or as second homes. The key here is that investors are betting on a rebound, and unlike 2006, they are doing it without debt. You can’t default on something you own outright. So, this recovery has a chance to be much more stable.

The WSJ advice? Buy and hold. the housing market is not the stock market. Buy because you need a place to live (and don’t want to pay rent anymore), or buy with a long-term investment strategy.

Give me a call at 602-456-9388 and I’ll help you put together your plan to take advantage of this market.