Saturday, May 14, 2011

It's Time to Buy Real Estate Again

Pt.1 It's time to buy Real Estate again, the most attractive asset class in America.
Mike Castleman, who calls himself a "dirt road economist" has not seen a shortage of new construction in the last 35 years like what he is seeing today. He believes in most markets the price of new homes will begin to rise this year, not fall. And as founder and CEO of Metrostudy, he is in a unique position to know. His company tracks data on the country's inventory of new homes. They cover around 65% of the US housing market, and the key figures they collect are the number of vacant and "For Sale" homes and how many months it would take to sell all of them. This measures inventory and determines if a market has a surplus or shortage of new housing. The numbers are 1/4 of what they were just a few years ago.

So we have a historic drop in new construction and prices that have declined 30 to 55% across the country. The affordability will lure Americans back to buying homes and the shortage will start raising prices in many markets this year. To take advantage before the prices and/or interest rates start up, call Bonnie Fagoh at 813-390-7606. Or click here to search the best Tampa Bay properties as they hit the market.

In Pt.2 I will address today's tight credit standards and the effect on the market, as well as the cost of owning vs renting.

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