Some "mixed" news was announced by the National Associations for Realtors today. But I think the news is FAR more positive than negative.
First, the "bad" news: In February, median home prices took a sharp dip of 8.2% nationally. Clearly, the carnage in the real estate market continued last month with a vengeance, as that drop is the sharpest in history.
But the silver lining is this: Buyers are returning to the market. Existing home sales increased 2.9% in February. That's the first time in six months that there's been any positive movement in existing home sales. This suggests to me that the prices are becoming too good for buyers to overlook. And that's a very positive thing for the U.S. (and world) economy.
You may recall from my previous articles that I have a gut-level optimism that things are going to get better in our economy pretty soon. I think this report is a good indication of that.
In any market scenario, an increase in buying that intersects with a drastic price decline can be explained in one (or both) of two ways: (1) The market decline has begun to slow and will soon be at a bottom or (2) The market has hit bottom and already beginning a rebound.
I suspect the second alternative. I don't expect we'll see a screaming real estate market like we did earlier this decade, but I do expect the market will begin a new uptrend of rational growth. Again, this is mostly my gut-feeling conjecture, but it's what I believe. And it's the assumption upon which my money is being invested.
Bryan Ellis is a real estate investment strategist in Atlanta, Georgia. Take a look at Bryan Ellis' Blog for a very unique look at the economics of the current real estate market.
My Links : best table saw under 300 bosch miter saw 3915 bosch tools 12 in dual bevel slide miter saw acne
ไม่มีความคิดเห็น:
แสดงความคิดเห็น