Monday, March 24, 2008


Real Estate seems to be at a bottom.
  • Inventory is high
  • Long Term 30 yr fixed mortgage rates are low and stable
  • Buying season is starting soon [most (or is it more) sales occur in spring and summer]
  • Sellers are figuring that it is better to reduce prices to market than to continue paying interest for many months [or years] waiting for a sale [at last years valuations].
  • Existing homes sales are slowly increasing still falling. Business Week coverage.
  • The slowdown may be coming to an end as government stimulus checks are going out in about 5 weeks.
  • As usual the stimulus will probably be late and the economy will already be in recovery.
  • This is the bottom and the deals will not be this good for some time [if ever again].
  • As this becomes the sentiment of buyers [and vultures] they will rush in to get the best locations and values.
The next few months will be interesting...

Any thoughts on housing, interest rates or the economy?

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