Sales of previously owned homes have fallen for the second consecutive month, bringing the inventory supply to its largest in 19 years! The supply of homes on the market has increased by 14.3% since November 2004, a very significant increase.
To quote USAToday “Naroff, president of Naroff Economic Advisors, called the inventory figure for November a “real major warning flag for prices.” But he noted that with mortgage rates still historically low, the softening in housing will likely be “orderly.”
I personally believe that real estate prices are going to drop, and drop significantly! If rates return to their 8% range from 2000, only 6 years ago, then you can expect as much as a 20% drop in price! This is great news for real estate investors because as the market drops investing opportunities will start to increase.