There is plenty negative talk about housing these days.
Let me tell you why I think it’s a great time to make that purchase.
As legendary investor Sir John Templeton said, “The time of maximum pessimism is the best time to buy”.
There are currently fewer than 1 million homes in inventory compared with 4 million homes that were in inventory back in 2007. Meanwhile, the U.S. population has grown by close to 30 million.
The most recent report on existing home sales showed that closing transactions were down slightly in January. But the same report also showed that the inventory of available homes is at very low levels.
Plus, a deeper look at the report shows that many of the homes reported as inventory are already under contract and therefore unavailable for purchase.
Take a look at this chart showing active listings, they are near record lows:
And you might remember from your Econ 101 class that supply and demand is what sets prices. Smaller supply means that a higher price is to be paid…so I do believe that home prices will not be going down any time soon!
Secondly, when inflation trends slow, we should see more favorable mortgage rates. This would create even more available buyers in a tight inventory environment and that could be very supportive of higher home prices.
You can find more about the supply issue here…
All things considered, the opportunity in this market appears to be very favorable.
Do reach out to me to find out more, as it would be my pleasure to help you finance that investment property or the home of your dreams.
