Housing: The "Steady Eddie" of Investments

From the National Association of Realtors:

Housing activity this year will be somewhat lower than in earlier forecasts as lending standards tighten and subprime mortgage originations tighten, according to NAR. Lawrence Yun, NAR senior economist, said speculative behavior, which contributed to abnormal price growth, is now on the decline. “Home buyers today are purchasing for the long-term, generally with a realistic expectation of modest gains over time,” Yun said. “Housing first and foremost is shelter. Second, it’s a long-term investment that slowly builds the greatest amount of wealth for most families.” NAR’s latest forecast projects existing-home sales at 6.29 million this year and 6.49 million in 2008, compared with 6.48 million last year.