August housing starts were down to 854,000 according to the U.S. Department of Housing and Urban Development, 35 percent lower than August 2007, and 53 percent lower than the 1,800,000 of August 2006. While the national news media is all over this with negative tones, I would like to point out that we still have more inventory that we can easily sell. And the only way to catch up, is to stop flooding the market with new inventory. This is a step in the right direction.
I believe that when the election is over, and we know where we are headed for the next 2 years (congress really controls this country), the buyers of homes will start to come back. Everybody has to live somewhere, and most think that homes are a great investment for the long term. Rates continue to improve, and as inventory levels start to diminish, buyers will become more aggressive. Remember that builders cannot replenish the inventory quickly, so when the current inventory is gone, we will again be in a sellers market. Every market is based on Supply and Demand. When the supply shrinks, the demand will cause an increase in prices. Right now we have weak demand and an over supply.
The Nashville real estate market has been known to change very quickly, I'm ready for it.
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