Wednesday, November 28, 2007

National Housing News

I read an article in Inman News today that seemed to say we are in an interesting time nationally regarding the housing market. The median prices across the country continue to slip, while housing affordability is rising a bit if you compare the 3rd quarters for the last 2 years. I had not been paying attention to the affordability index recently and it will be interesting to see how that is affected as the prices adjust. I am curious what others might think that will do to consumer confidence. It would make sense to me that if the affordability of homes increases, so then would consumer confidence. My only thoughts are how soon will the consumer confidence rise after the affordability index rises. A huge jolt of confidence is precisely what I think this market needs. The stock market has had a couple of good rallies recently. I know the White House adjusted it's growth numbers slightly for next year, but growth is good and being on the plus side of that is always good. The other piece of confidence I think is another group that needs a big jolt of confidence is the investors who have purchased mortgage backed securities. Once they start feeling good and the home buyers are confident things will get back on track. It can't be too far away. Let me know what you think. See You In Escrow!

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