* * * * Hard Core Real Estate Talk * * * *
The Analysts at Barklays Capital appear to be engaged in some numbers crunching. Sadly, they fail to understand what we mere real estate industry practitioners understand – - SUPPLY DOESN’T EQUAL DEMAND.
LET’S MAKE THE CONSUMER THE FOCUS OF THE HOUSING MARKET.
If the question is, “Is this a good time to buy a home?”
Considering the historic low interest rates, supply of well priced homes, the answer must be a resounding “YES”. However, unlike the examples of history where the future investment potential was a huge factor, that may take a back seat today to AFFORDABILITY, which is quite high. With high AFFORDABILITY, comes OPPORTUNITY for serious housing consumers make the most of this unique opportunity and focus their housing needs on BUYING their next home rather than RENTING their next home.
Barcleys says “Housing supply could normalize in 2014″. That’s a mere prediction. Let’s look at the FACTS that influence consumers TODAY.
FACT: Each and every single home buying consumer with whom I’ve communicated in the past year sees buying a home as an opportunity due to low interest rates and low home prices. Interest rates are at an historic low and home prices are back to the 2002-2003 levels.
FACT: The overwhelming percentage of residential housing consumers would prefer to OWN their home rather than RENT.
Children living with parents
Increases in rental consumers
Loss of credit
Loss of savings
Loss of housing equity
Higher cost of living
Loss of consumer confidence
And More. . . .
** The housing industry will not recover due to an increase in housing supply.
** The housing industry will recover when the consumer DEMANDS a supply.