The trend continues. We are well into the Spring buying season and a stable pattern of growth is developing. It is very hard to believe, but inventory levels are so low that there just aren’t enough homes for sale to satisfy the buyer demands.
Speculative new home building has been left to a very few national builders and many sellers who are upside down have made the decision that they can’t win in today’s housing environment. This has triggered very low listing inventories. Nationally, they are down about 22 percent. Why? Shrinking foreclosure rates, as well as some sellers holding out to maximize appreciation, or they are upside down or they think they can out wait the cycle.
Total distressed property numbers are on the decline and the concept of selling low and buying low is resonating with the greater public.
Here’s a real life example: You purchased a beautiful home 8 years ago off water at one of Carolina’s beautiful lake communities. At the time, you did not purchase on the water because it was price prohibitive. Today, you can take a hit on your existing home and move up to the front row and make money on the swing. The money you save affords you that boat in the slip, and the current low interest rates assure a predictable future cash flow wise.
The road signs are very clear. The real estate market is no longer the culprit for our economic ailments. One by one, without tax credits and incentives, America is proving once and for all that homeownership is still a deep-seated priority.
By Pat Riley (President and Chief Operating Officer)