John Paulson, the hedge-fund manager who made $15 billion shorting the real estate market, said Monday that he expects housing prices to rise between 3 and 5 percent this year and another 8 to 12 percent in 2011.
Paulson, who made his comments in a conference call with investors, said home ownership is the most affordable it has been in 50 years. He said residential real estate is 60 percent more affordable than it was at the peak of the housing bubble.
Paulson added that his firm closely tracks home prices in California; he believes they are the most important indicator what the rest of the country’s housing markets will experience six months from now.
He also said the United States is in a strong V-shaped economic recovery. He said his concerns about a double-dip recession have fallen sharply since the beginning of the year. Click on link for entire story.