Real estate investing is poised to become the next big thing in the United States. With current house prices falling to new levels, market players are gearing up for a major rebound in the real estate industry. According to financial research giant Standard and Poor’s, current house prices are down to 2003 levels. House prices dropped 18% in April in S&P’s 10 and 20 city indices. While residential property prices extended their fall, industry watchers believe that the market is nearing rock bottom, making real estate investing a top prospect for investors.

Analysts expect property prices to turn the corner in the coming months, noting that the rate of decline of prices of residential assets slowed down. David Blitzer, chairman of the committee that handles S&P’s index, said that while one month’s data is not enough to guarantee a turnaround, there seems to be “stabilization” in some areas across the country. “We are entering the seasonally strong period in the housing market, so it will take some time to determine if a recovery is really here,” he said.

The positive sentiment surrounding the residential property market is attracting the interests of investment firms that are eager to change their real estate investing strategies in the country. One such company is GoldenTree InSite Partner, which pulled out of the US real estate market in 2006 but now plans to return to real estate investing in the country. “Now that the meltdown has happened, the new emerging market is the United States,” GoldenTree InSite president Tom Shapiro said. “I think there’s going to be the best opportunity to make money in the last 20 years in real estate in the US.” The company plans to spend around $1 billion in real estate property investments.

GoldenTree InSite is just one of many investments firms that are preparing to change their real estate investing strategies in the US. It identified San Francisco as among the top cities for real estate investing, with residential property prices in the Bay City falling 28% from a year earlier. Phoenix recorded the biggest drop with 35.3% while house prices in Las Vegas fell 32.2% in the same period.

Real estate investment firms know that now is the best time to invest in houses as real estate properties are being sold at prices far below their full market values. And with positive signs indicating a gradual economic recovery in the near future, real estate investing presents the biggest investment opportunity for investors.