Existing Home Sales Lower Than Expected
Author: Rob K. Blake
Published: July 24, 2008
The National Association of Realtors (NAR) reported today a decline in June of existing home sales by 2.6 percent, a ton more than the 1 percent drop expected.
After better numbers in May, this is a clear signal the housing market still has a long way to go before hitting bottom. This bad news is being reflected in the stock market as many sellers decide to pull some money off the table cashing in on the drop in oil rally of recent days.
What does this mean for home owners or potential home owners?
If you are needing to refinance, do it now before the continued drop in home values wipes out your ability due to decreasing loan-to-values.
If you are wanting to buy…wait.
Why pay $200,000 for a house today when in 18 months the same house will sell for $160,000?
If you need to sell…a job transfer, divorce, etc…rent.
The rental market is still good. You could rent the house until the market rebounds which it surely will since Bernanke is inflating the money supply like a drunken sailor. (no offense to drunken sailors…)
I know being a landlord does not appeal to most home owners, but desperate times call for desperate measures. With runaway inflation the most likely outcome of the Feds “low dollar” policy, real assets like real estate and gold, will appreciate with abandon once inflation really takes hold. And on the inflation front…you ain’t seen nothing yet.
In other words, you’ll be glad you did!
Good Luck!
Author: Rob K. Blake
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