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A Reason For Optimism

By
Real Estate Agent with Windermere

HEADLINE: Baltimore Sun: Shortage Of New Homes Seen -- Credit Crunch Means Fewer Units Will Be Ready When Recession Eases

Analysts have been predicting a shortage on new homes in the Puget Sound area will start in September due to the lack of new construction permits being issued.

 Looking at this chart ... (Eastside - New Construction - Based on Pending sales)

...You can see that the months of inventory are shrinking.  And at this rate, we will get to a balanced market after September.  If it continues we will be in a Seller's market by early next year for new construction.  This, some believe, will put pressure on the overall market and push prices higher in 2010.  A year from now, concerns about buying a home only to see it loose value will be behind us.

And the headline- That's from the Baltimore Sun -  1991. When you read it you get a different perspective about today's news.  

Scott Wilkerson
Academy Mortgage Corp - Bellevue, WA

I hope this will bring the values back at least halfway since the bubble burst. We can expect higher rates when the home values start to increase.

 

Jun 09, 2009 09:53 AM