Housing Market & Chimera: The Numbers Don't Lie
NEW YORK, January 15, 2013
NEW YORK, January 15, 2013 /PRNewswire/ --
With recent news surrounding housing and real estate this year, investors who
are looking for good bets may want to place their money where the numbers are.
With numbers heating up in the real estate market, Chimera Investment
Corporation (NYSE: CIM) [ Full Research Report ] ^(1) may be in for a good
year. Home equity recently surpassed $7.6 trillion, reaching its highest point
in the last five years.
"These results indicate that 2013 could be the year that Americans begin to
embrace credit again, after the considerable deleveraging we've seen since
2008," said Dr. Andrew Jennings, chief analytics officer at FICO and head of
Financing analysts and bankers are bullish on the housing market. The focus of
Chimera on residential real estate lending can lead the company to an
impressive growth this year as homeowners take advantage of record-low
borrowing costs. In December 2012, Federal Reserve Chairman Ben Bernanke
discussed the approved open-ended quantitative easing program, and how it has
significantly decreased long-term interest rates. A credible decline in
mortgage rates is another reason for Americans to celebrate their way to a new
After housing prices skyrocketed from the median price of $50,000 in the 1990s
to $250,000 in 2006, most citizens opted to rent apartments and condos to
manage their finances, and ultimately to sustain their lifestyles. Since the
downturn of the industry, renting homes and condos had become the darling for
most consumer segments. This demand, however, created a bubble that led to
renting costs that are more expensive than owning a home. Now that the times
have changed, the whole populace has more reason to buy a residential property
- anywhere in the country.
In CNBC's recent interview with Warren Buffett, considered the most successful
investor of the 20th Century, the "Oracle of Omaha" said that he is putting
where his mouth is, referring to his bullish stance about housing and real
Although most banks are expecting a surge in the application of credit line,
refinancing and mortgage credit in the next six months, a survey showed that
over 70 percent of bankers believe that consumers must manage their finances
with caution. Home prices are also expected to mildly rise this year, but the
annual price hike of five percent may be managed, if there are enough houses
on the market.
While the positive outlook of investors and analysts on housing and real
estate is slowly uncovering, real estate securities are a good source of
investment for those who want to bring home great dividends and capital gains
throughout the year.
In October 2012, Chimera recorded 13.20% dividend yield per share. The company
has an operating cash flow of $400 million, and a 6.16 forward
price-to-earnings ratio. With numbers like these and a favorable real estate
climate, you don't need luck to secure your investment.
^(1) ^ The Full Research Report on Chimera Investment Corporation -
including full detailed breakdown, analyst ratings and price targets - is
available to download free of charge at: [
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