Housing Market Trends Graph…
Are a huge item in the 24/7 news media right now. It feels like almost every website, newspaper article and pundit on television is discussing and dissecting the housing market trends graph. All we keep hearing is that there is a tremendous decrease in the available housing inventory. And it’s true- according to the New York Times, inventory levels on a national basis are at the lowest they have been since 1999.
But why is this housing market trends graph such a good thing for the average person? How does the trends graph affect me? Well, there are several reasons it is such important news. The first is because many experts predict the housing recovery is the first sign that an overall economic recovery is on it’s way.
These experts often say that consumers who live in homes whose values are appreciating (in contrast to them depreciating steadily since the bubble in 2006) will have more equity in their homes. More equity means a higher net worth and a higher net worth gives a home owner more confidence about spending money. With more consumer spending, comes improved retail and business results- driving the economy forward.
It is also important news because The Generation Y’s (i.e. 25-35 year olds) can feel more confident about the prospect of buying a home. Since 2006, the overiding message thiscritical rtant demographic heard was – houses are losing their value year over year and that they should stay on the side lines until the bottom of the crash.
Lastly, when thees “first-time buyers” enter the market place, they drive down inventory levels, which in turn drives up prices. It also means that the “move up” buyer can now sell their “first” home without incuring a big loss and purchase a more spacious and expensive home for their next lifestage. It’s in essence a “trickle up” theory. Let’s hope they are right!