It was Kenny Rogers, not King Solomon, who sang “Know when to hold ‘em, know when to fold ‘em.” But the wise monarch might have appreciated the song’s nod to wisdom and discernment – not just in the game of poker, but in life. The King’s Proverbs urge right action based on wise decisions that take into account a number of different options.
Today, a new survey of the US housing market conducted by financial advisors Credit Suisse points out that the market is gaining strength. As repoted in a recent edition of Business Insider, Credit Suisse recently conducted its monthly survey of real estate agents and housing industry experts in 40 US housing markets in an attempt to profile the actual state of the recovery. Their results? Housing is at its strongest in the history of the survey.
Granted, Credit Suisse’s survey only dates back to 2005. But it spans the period of the housing bubble and its disastrous collapse as well as events since then, so behind the hyperbole stand some real data that could shed light on the state of he market as spring selling season approaches A key finding reveals that a driving factor is a sense of urgency among buyers who are taking into account the many indicators that now might be a wise time to purchase a home.
These buyers fear that time is running out on those historically low mortgage rates, and waiting to buy may lock them into higher rates. Home prices are rising, too, and this along with low rates fuels a rush to get a good deal before it’s too late.
Another factor driving buyer urgency is the well-publicized low supply of available houses for purchase. That supply continues to shrink nationwide, for numerous reasons including the holdup of many potentially available properties in the foreclosure pipeline. What’s more, the length of time required to sell a home also fell to a new low in major markets around the country, signaling even higher prices in the coming months as demand outstrips supply.
These indicators of a housing market that’s not just recovering but surging come at a time when tighter mortgage lending standards threatened to exclude numerous potential buyers from getting a loan, and financial experts predicted am upsurge in the rental markets. But as numerous consumer surveys continue to affirm, the “American Dream” of homeownership is still alive and kicking for many, and potential buyers feel the need to act now in the face of future uncertainties in the market.
For income property investors following Jason Hartman’s guidance as well as residential homebuyers, Credit Suisse’s findings paint an optimistic picture of the housing market in the months to come. But with inventories low, prices rising and competition keen for existing properties, perhaps that “urgency” to buy may lead to some very wise decisions.
The Solomon Success Team