CNN just reported that sales of newly constructed homes plunged to the lowest level on record….going back to 1993. The U.S. Census put out that Decembers sales pace was 44.8% below the same month last year. If your a builder, or you invest in construction stocks, this is certainly alarming, however if your investor, lets dig a little deeper into the numbers.
- First inventories for homes on the market have been dropping now for 5 consecutive months.
- New homes are not selling because you can buy foreclosures for pennies on the dollar
- 5% Mortgage Rates
- The number of “Existing Homes” sold in December rose 6.5% from the previous month
So with inventories declining and low mortgage rates, investors are starting to dip their toes back into the market. I see this as a positive indicator in an economy that continues to show weakness. As a full-time Real Estate investor, I continue to look for value opportunity properties that I can hold for 3-7 years as we watch the market cycle around.
