New Home sales are down 33% from prior year, but there could be a silver lining!
I was reviewing a article that said new homes sales are down 33%. The interesting thing is that as bad as those figures sound that I am actually shocked that the numbers are not lower. In prior years, credit was easily accessible. Today, instead of focusing on the negative news, I will change roles and analyze it from the cup half full perspective.
If banks are not lending in this credit crisis, and people are losing their jobs; then who are buying all these homes? Our natural inclination in these times is to assume that the economy has ground to a halt, but I think that this helps put in perspective that even in the most dire economic straits that the US economy still keeps running.
66% of home purchase could not have been bought by investors, so this indicates that even in these bleak hours some people are finding great deal. They must have tucked some serious cash under their mattresses, but it worked for them didn’t it? As many realtors and real estate experts say, this is a time to buy for those fortunate enough to be in a position to do this.
We are in the longest recession since WWII, and yet our real estate industry has only been knocked down 33%. I was not alive in WWII or a historical economist, but from what I learned in class; WWII nearly brought the US to a stand still. This means if this is the worst that we are facing, then this country will survive. As they say, “This too shall pass.”
(Jay Raman is a real estate investor and he is the owner of a full service real estate property management firm, Ashoka Lion www.AshokaLion.com. You can send emails to him through the “Contact Us” portion of the site)
Mortage modifications are increasing too. Banks are offering owners half price mortgages. At the very least they will incorporate what you owe, three months of payments usually, into the remainder of the loan and give you a fresh start.
Opportunities to make deals on credit card ballances are now abundant. I heard it is common to have $100,000 in credit card debt settled for $35,000.
Student loans are seeing reductions too.
[...] Original post by ashokalion [...]
I agree. We should be cautious during these tough economic times and hopefully learn some valuable lessons about not overspending. We should also remain optimistic, this country is amazingly resilient. While things are difficult now we are also very lucky.
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I agree. We should be cautious during these tough economic times and hopefully learn some valuable lessons about not overspending. We should also remain optimistic, this country is amazingly resilient. While things are difficult now we are also very lucky.
Wonderful insight
I agree. We should be cautious during these tough economic times and hopefully learn some valuable lessons about not overspending. We should also remain optimistic, this country is amazingly resilient. While things are difficult now we are also very lucky.
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