Despite the economy still being depressed, current trends show that right now may be the correct time to get back into the real estate market.
Many of us have been waiting for the right time to purchase our first home, but believe that given the current economic climate it might be a bit of a risky step to take. While the economy is depressed, and no one is denying that, what most people are neglecting to notice is the basic supply vs. demand statistics that we are currently experiencing in the California housing market.
Consider this: the National Association of Realtors has stated that not only have existing home sales gone up 8.6 percent, but also existing inventory for sale has lowered 24.4 percent. This is a perfect example of basic principles of supply and demand. Here you notice that demand for houses is starting to rise while supply is dropping more each day. Moreover, the number of houses being built each year is decreasing drastically. Where we were once looking at an average of over a million homes being built each year, we are now at an average of 647,600! What does this tell you? We are in the midst of an upcoming housing shortage!
Unfortunately this housing shortage is not something we can control; however, we can control when we purchase our homes. So, to briefly recap: why purchase a house now? Simply because there is no better time in the foreseeable future! Inventory will soon become depleted, and the market will shift from a “buyer’s market” (where we command price) to a “seller’s market”.
Furthermore, given the record low interest rates, becoming a homeowner has never been this affordable!
Therefore, if you’re looking into buying a house, DON’T HESITATE! Contact us today at 888-550-4440 and let us help you.
Contributor, designer & admin for JohnHart Gazette.
