Some of our clients are expressing concern about a “double dip” in house prices after seeing some recent “scary” headlines. But, we do not think another drop in housing prices is likely for several reasons. First and foremost, as you all know, inventory is down significantly from last year (about half the level in many areas), and demand for housing is surprisingly outpacing supply in many areas. Equally significant is the point every “monetarist” economist is making right now: the Fed is “priming” the economy with a huge increase in our overall money supply, and this always results in at least a temporary increase in asset prices and economic production.
In light of the above points, and the extremely low fixed rates, we think housing is the buy of a lifetime right now. And yes, we are well aware of the potential onslaught of REOs that could hit the market.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167