Housing – Deal or No Deal?
By Joseph David, CMPS
(Clarion Mortgage Capital, Inc.)
The new home sales for December 2007 were reported below expectations. The supply of new unsold homes rose to 9.6 months from November's reading of 9.3 months. What 2008 will be like if you're looking for a real estate deal? Last year home prices dropped between 5 - 10%, but there was no "bubble". This new year will be another down year for housing with similar declines in prices - but will also mark a bottoming out. The thing of it is...you can't see a bottom until you are already past it, much like how we always see refinance activity pick up when rates start rising from their lowest levels! What makes 2008 such an attractive year to get a good deal?Rising incomes and lower home prices will make real estate more affordable, as some of the excesses of housing inventory are washed ou...