A Perfect Storm for Spring Rebound
I've heard all the bad news I can stomoch, the media is basically spending every day and every hour looking for more bad news in housing. Let's be honest most of the news is "old news" and happened months ago.
Transparent Real Estate does a nice job tearing the "bad news" being reported apart and looking at the good news inside for the future. No, the dollar won't crash. Yes, inventories are high, but frankly that means now is the best time to buy, before those inventories start to decrease and prices regain traction.
"The housing market will turn around on a change in consumer perception. Three things will happen: 1) lower interest rates will stimulate demand for housing stock not affected by subprime, 2) lenders will start lending again, after all it is their business model (now, it's harder for consumers to qualify for loans due to problems with the credit market, not their individual credit quality), and 3) pent up buyer demand - consumers realize that they want to live in Palo Alto where inventory is tight and schools are good, and not in a Sacramento suburb still littered with empty houses."
2 comments:
You're right - the media does tend to dwell on bad news. I guess sometimes the facts can be so boring.... Great post, though.
I was touring Naples Florida today with an agent, he spent the entire time telling me how bad things are. "Things will be bad for at least three more years."
Now if he believes that, he'll talk that way, and basically contribute to making that exact thing happen.
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