Is this a sign of a healthy market?
- Increase the supply of homes for sale
- We predict that by the end of…
- Selling more and more properties to…
How real is the real estate market? If you’ve seen the news, foreclosures are increasing. Is this a sign of a healthy market?
More foreclosed inventory and bank owned properties only serve to increase the supply of homes for sale. The number of these homes for sale actually outnumbers the sellers of their own real estate.
Therefore, we predict that by the end of summer you will see real estate prices starting to fall again, as the supply far outweighs the demand. More concerns about the future of the U.S. economy will keep people from buying real estate whether it’s new homes or resales.
If people are in a position to buy a home, they will postpone their urge by at least a year or two before they reconsider jumping into the market. In the meantime, the banks will hope to be able to find enough investors to take inventory off their hands, or will be selling more and more properties to hedge funds.
QUESTION: What should readers take away from this message today?
ANSWER: That just because you think that home ownership is the be all and end all of security you must think again.
QUESTION: Why is this information timely?
ANSWER: This information is timely because in most communities it’s difficult to find rental properties for people who are not buyers. This will be what drives more investors into the market.
QUESTION: How can readers best apply this information to their lives right now?
ANSWER: If you have enough money for a down payment hold onto it for awhile.
COMMENTARY: Real estate is becoming a business, not the American Dream it once was. In fact, real estate doesn’t even fit into the American lifestyle anymore. It’s not liquid or flexible, and it’s certainly not a good investment. It’s a false sense of security to own real estate. It used to be important to have a home to raise a family, but that family home gets postponed each time there’s yet another economic concern. There are also those who thought paying off their home would provide security, but that hasn’t worked like they planned either, due to increasing costs of everything related to home ownership. Real estate is either a business or something only the very wealthy will soon be able to comfortably afford.