With the rally we have gotten in the stock market in recent days, and with the Fed hell bent on inflating their way out of the housing bubble, real estate looks to be better than stocks here. With all the negativity in real estate, the overhang of supply which has pressured prices in the hot regions, going in and buying real estate in cities with exploding populations is a good value. The record profit margins of US companies will be pressured as wage inflation is the next step as workers demand higher wages in the face of $100 oil, $12 wheat, etc, the list goes on. That is why the homebuilders have gone up so much, this is more of a credit problem than a problem of an oversupply of houses. The overhang of houses will be sopped up, especially with the Fed pumping out the liquidity, it is just that overall credit quality is poor, which is the banks' problem.