Friday, July 22, 2011
High unemployment = opportunity
A WSJ report today indicates that the unemployment rate is up in 28 states. What does this mean for the housing industry? Nationally, it means more of what we have been experiencing. Uncertainty. I believe that we will not see mortgage interest rates rise in any significant way until the economy begins to recover. Without jobs, the economy won't be turning around. So, rates are likely to remain low for the time being. In the Tucson market, we are seeing some stability begin to take shape. We have 5 straight months of declining home inventory, and a general increases in sales activity. This is a good trend for price stabilization. Low supply + greater demand = higher prices. It is still to soon to call the bottom of the housing market in Tucson, but it is sure looking like we are close. There are investors and first time buyers out there right now looking for homes and I am currently working with both. What to do? Buy a home as soon as you can get it done! Rates won't stay low forever, and neither will prices. Speak with a lender today to get yourself qualified, and go shopping! If you are selling to upgrade or downsize, there are buyers out there ready to buy your home. Get it listed! This is a time that we will all look back at later and say "boy, I really should have bought more property when I had the chance"!