Throughout the last year it seems the near flat-lining economic heartbeat has begun to find a pulse. Consumer spending is up, confidence in the economy is rising and unemployment is falling.
Although we’re still battling soaring gas prices, there is plenty with which to be enthusiastic. Not the least of which is positive press regarding the real estate market. Yes, you read correctly. Fortune Magazine, a reputable, national publication has released their April addition exclaiming, “The Return of Real Estate.”
Sure, over the last couple of years we have heard our fair share of false claims regarding all aspects of the economy but if any publication knows a thing or two about real estate, it’s Fortune. During the housing boom of the mid ‘2000’s, Fortune repeatedly warned of a market collapse, sighting that things were moving too fast.
Now, based on an economic reprieve including decreasing unemployment and a rise (albeit a modest one) in individual savings, coupled along with a substantial lack of new housing inventory, Fortune envisions sunnier days in the not so distant future (read the full article here).
In a nut shell, Fortune believes that new housing construction is a tell tale sign of a housing market’s condition. New housing generally indicates the rate at which a city is growing. As families grow and savings accounts become more padded, a natural next step for much of the population is upgrading to a new home.
The nation as a whole is currently experiencing a major shortage of new housing. In fact, the number of new homes is at its lowest in more than a decade, and is less than one quarter of the peak figures of mid-2006. The off market prices will gradually lure home buyers back into the market, snatching up what few new homes remain, thus increasing home prices, which will inevitably necessitate a flurry of new construction at increased prices.
Will you be a buyer that takes advantage of the currently low new home pricing? Or will you be a buyer that waits a tad too long and forgoes a tremendous deal?
“Forget stocks. Don’t bet on gold. After four years of plunging home prices, the most attractive asset class in America is housing.”—Fortune Magazine
-NHP-
Tags: comeback, fortune, fortune magazine, new construction, new housing, real estate, the return of real estate
