The Wall Street Journal recently reported that the supply of homes for sale in October has declined in most markets, that is a positive sign for sellers; usually the reverse is true. Inventories do remain above year-earlier levels but the latest data confirms that the surplus is on the decline. Part of the decline may be do to the fact that some sellers are taking their homes off the market and waiting to re-enter when pricing is more in line with their expectations.
For the most part we know that home ownership is a safe and secure way to invest and to build long-term wealth. According to statistics in a recent National Assn. of Realtors publication the price of homes bought ten years ago has increased 88 percent. The number of households is expected to increase 15 percent during the next 10 years thus creating a continued high demand for homes.
The large inventory probably won’t last long, housing prices are forecasted to post positive gains, interest rates are comparable to 40-year lows and even our former Federal Reserve Chair, Alan Greenspan, said that housing prospects are looking up and that most of the negatives are probably behind us. Sounds like it may be a great time to buy a home.
Have a wonderful Thanksgiving holiday!
Enjoy, Life Is Good!
Gary A. Nathan
