I get emailed a lot of information from, and about, the financial markets. Earlier this week I received an email from one service that talked about the recent stock market gyrations and offered an opinion about what was currently driving the market. Here’s what it said, in part:
“For now, stocks seem focussed on the last crisis – that of the financial/housing mess – which seems to be pretty much over with. At least, almost every week we get more positive news about it.
Recently, we heard from Toll Brothers, the home building company. While the company’s numbers were not brilliant, the Chairman spoke positively about lower cancellation rates and pent up demand for housing. And why should he not? After all, real estate is the one hard asset that has not risen along with commodities. It’s due to have a turn. Besides, once the mortgage rate falls below the inflation rate, buying a home is a no-brainer investment.
So it makes sense that housing starts rose last week. More significantly, housing permits – a leading indicator for not just the housing sector but the economy as a whole – climbed for the first time in quite a while. We also heard from many brokers that the worst of the credit crunch has passed.”
Well, it seems as if some folks think we may be finding a bottom. That’s good news for buyers because the bottom is where, ideally, you want to be buying. It’s also good news for sellers because, once the psychology changes about this market, more buyers will start coming into the market, properties will start selling again, and inventories will be reduced.
Have a great – and safe – Memorial Day weekend! Come to Maine and enjoy the fresh air and sunny weather!
Remember, if you’d like to take a look at the entire inventory of Maine lakefront property for sale, use our Lakefront Locator and find a lakefront home of your dreams.