Housing inventories are on the rise and sales of previously owned homes are at their lowest level in over two years. The Chief Economist at the National Association of Realtors, David Lereah, said today that â€œThe housing sector is fragileâ€â€¦ya think?
The median price of a home sold last month was still greater than the same period last year, but the increase in the median home price was the smallest in five years. Might this be the result of rising mortgage rates and energy prices? Obviously the momentum in housing is slowing, so what does this mean for the investor? You can read Robert Kiyosaki’s thoughts on how to profit from a cooling Real Estate Market here.
Or, if you are at risk of losing your home due to rising rates and lack of liquidity in a cooling housing market, you might want to compare the best loans available to reduce your interest payments immediately with help from The Thrifty Scot.
Toll Brothers has lowered its guidance for the rest of the year along with Lowe’s, America’s largest home improvement chain. It seems that people have started to tighten up the purse strings amid this economic slowdown. This can’t bode well for the near future of home builders. In fact, it was reported that confidence among home builders has recently sunk to a 15-year low!
Let me also be the second to say YIKES!