It’s easy to go wading through the week’s news and find dozens of stories about how the current real estate market is the worst thing since asbestos, but it another whole thing to try to read between the lines to see if there’s a silver lining.
How many times have I read recently that new home sales are so far down that they forgot what “up” is, and that construction starts have all but stopped?Now, if you combine these two stats, something else stands out.With fewer new homes being built, and fewer new homes on the market, aren’t there going to be fewer new homes sold overall?In addition, it’s probably a good thing that there are not as many new homes currently under constriction, because it is not a good thing to continue to saturate an oversaturated market. Therefore: Natural market correction?You be the judge.
I also don’t care to think about how many times I’ve read that home prices are plummeting faster than people’s confidence that there will be cheap gas again.Again, though if you look at it a different way, a couple things come to mind:There are only a couple markets that are really hurting, which drags the “national” numbers down (though, as I’ve said before, there is no national real estate market…). In addition, if these sale prices are down, it means that some people have found ways to sell their properties, which is a good thing (fantastic if you’re a buyer).
If we add those two last paragraphs together, we find that there is less inventory being introduced into the market, and that people currently in the market to sell are finding ways to do so.Following me?Right now we have an abundance of sellers, and a paucity of buyers.But, if these aforementioned trends continue, we should (hopefully) be at a point where the playing field levels again, and the buyers and sellers of the world can enjoy a more balanced marketplace.
I therefore leave you with the following challenge:Study your local market.Know if prices are rising or dropping, for what types of properties, and why this is happening. Then spread your knowledge.
This entry was posted on August 29, 2008 at 4:04 pm and is filed under Real Estate Commentary. You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
A Different Way to Look at the Real Estate News
By mrrealestateguyIt’s easy to go wading through the week’s news and find dozens of stories about how the current real estate market is the worst thing since asbestos, but it another whole thing to try to read between the lines to see if there’s a silver lining.
How many times have I read recently that new home sales are so far down that they forgot what “up” is, and that construction starts have all but stopped? Now, if you combine these two stats, something else stands out. With fewer new homes being built, and fewer new homes on the market, aren’t there going to be fewer new homes sold overall? In addition, it’s probably a good thing that there are not as many new homes currently under constriction, because it is not a good thing to continue to saturate an oversaturated market. Therefore: Natural market correction? You be the judge.
I also don’t care to think about how many times I’ve read that home prices are plummeting faster than people’s confidence that there will be cheap gas again. Again, though if you look at it a different way, a couple things come to mind: There are only a couple markets that are really hurting, which drags the “national” numbers down (though, as I’ve said before, there is no national real estate market…). In addition, if these sale prices are down, it means that some people have found ways to sell their properties, which is a good thing (fantastic if you’re a buyer).
If we add those two last paragraphs together, we find that there is less inventory being introduced into the market, and that people currently in the market to sell are finding ways to do so. Following me? Right now we have an abundance of sellers, and a paucity of buyers. But, if these aforementioned trends continue, we should (hopefully) be at a point where the playing field levels again, and the buyers and sellers of the world can enjoy a more balanced marketplace.
I therefore leave you with the following challenge: Study your local market. Know if prices are rising or dropping, for what types of properties, and why this is happening. Then spread your knowledge.
Tags: asbestos, construction, construction starts, local real estate market, national real estate market, Real Estate Commentary, real estate news, real estate prices
This entry was posted on August 29, 2008 at 4:04 pm and is filed under Real Estate Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.