The other day I was talking to a real estate agent in his store, he mentioned home building and sales were not as strong as they have been in the past couple of years. I mentioned that there are many people who are buying homes, but it seems that construction and new home sales are down in most areas. He said that it is hard to get house selling permits and there are too many foreclosures on the market. It seems that the economy is pointing toward fewer home builders, and builders have to really compete against each other for business. In addition, the price of lumber has been going up quite a bit and we all know that prices in lumber can fluctuate very quickly. Explore more about this topic here . Now then, I know you probably are saying that it is going to be tough out there with all the foreclosures and all of the home building permits that must be gotten before the new builds can start. He replied, "No it is not tough, it just depends where you live and what is available locally. If you have a good home plan and a professional builder, you will be fine. If you do not know anyone or if you are trying to build your own, you will have to do it the hard way. Home building and sales are down in the dumps in the big cities, but they are up considerably in the suburbs where there is plenty of land and labor to use." He went on to say that right now the demand for new homes is very high and home building and sales are low, so builders need to work more and they need to lower their prices to get more buyers. This can only happen if the home building and sales are up, and the prices of lumber is at a one-year low. And even if they go up, it will take time to recover, and it could take several years for prices to really rebound. He said that we should keep our eyes on the future markets and not get too excited about a rebound now because it could fall again very quickly. With less spending during these tough economic times this will help support our economy. Take a look at this link : https://www.hollandhomessales.com/listings/communities for more details about this topic . Then he said the other day that we had hit a one-year low in home building and sales and it was a worrisome situation. In the last couple of months we have actually seen a drop in new housing starts. In fact we have had to build more than three hundred thousand units over the last year. Not enough new construction units have been created to keep up with the demand and the slowdown in the market has meant less inventory on hand. This is causing home prices to drop. What does this mean for home building and sales? Well, for starters there are more units on hand and the supply far exceeds demand. It also means that prices are at the lowest level since before the current economic crisis. This is helping to support the current economy to grow at the fastest rate in years. If you are having trouble selling or buying in this market it is important to take advantage of these low levels to get the best possible price. So, let's wait two years and see what happens then. Is the Federal Reserve still printing paper money? Do interest rates go up or down? One thing is for sure and that is the building materials industry is going to be in a crunch until the end of the year. Only then will we see an increase in home sales and the lowest level since the mid nineties. Discover more about real estate investing here: https://en.wikipedia.org/wiki/Real_estate_investing .
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