Housing News Got You Down?

I just read this article from Bloomberg.com that was just depressing. Every paragraph painted such a grim outlook, explaining how things are so bad and why they are getting worse.

The title was "U.S. Economy: Home Resales in U.S. Decline, Inventories Climb". Sounds bad, right? It is. They quote enough bad stats to make all of us run for a cave.

The article doesn't mention any lights at the end of this tunnel, but does conclude by telling us about congress trying to issue $300 billion in mortgages to "stem foreclosures" and adding more regulation to the mortgage industry. In other words, growing the government to fix the economy.

Have HOPE
I'm not an economist, but I know that life is full of cycles. The economy and housing market are not exceptions. I actually get hopeful when I read articles like this. Why? Because I think that the market will correct itself, and as so many people wait to buy a home or builders hit the brakes in new construction, a type of pent up demand is created.

For example, when I hear that new construction has slowed to pace not seen for 17 years, I know that we've overcompensated for a slowing economy. I also think that it's a healthy correction to a housing market that was likely inflated by financing that allowed virtually anyone to purchase a home, whether or not they had the means to do so.

Once the good news begins to trickle into the media, perhaps confidence will be restored and that pent up demand will be unleashed.

Most of my optimism is based in my knowledge that the Nashville market is above average in this case. Especially most of the downtown neighborhoods where I focus. Perhaps there is more caution in the air, but average prices here have continued to rise, a testament to our diverse and strong local economy.

It's okay to be cautious moving forward, but let's not get depressed and remember some of the good news as well.

-Peter

www.NashvilleCityHomes.com