Housing starts down nearly 19%

According to a recent Bloomberg.com article, housing starts for November are down 18.9%, the slowest pace for nearly a half-century. While this may be a bad sign for housing and many look at it as a bad sign for the entire economy, I see it as a step in the right direction! One of the many current causes (and results...it's a vicious cycle) of the current market conditions is the excess inventory of homes currently on the market. The first step to lowering the inventory...STOP BUILDING NEW HOMES!!! When this happens, more of the unsold inventory will get sold, markets will stabilize, and buyer confidence will return. Couple this with interest rates below 5% (guest post coming soon!) and we could see a return to normalcy sooner than later. Just don't wait for your favorite 10 o'clock news show or online news source to tell you things are better, because by then it'll be too late!

Remember to check back every month when I publish the most recent sales figures for local towns...in the meantime check the most recent figures.