Positive news about the housing industry, and the economy in general, helps restore consumer confidence, so we’re glad to see headlines that offer hope rather than doom and gloom. We’re seeing more and more pronouncements that the recession is ending and the bottom of the housing cycle has either passed or is near. But at the same time, we understand – and we hope you do too – that good news doesn’t mean a fast and furious market.
Take, for example, the optimistic packaging of a routine housing story in the Wall Street Journal July 28. The headline, for a story on Commerce Department statistics, read: “New-Home Sales Jumped 11% in June From May.” the story’s hopeful tone continued in its first sentence: “New-home sales soared in June from the previous month…”
The Journal using verbs like “jumped” and “soared” is appreciated, but those of us in the business maintain a sharp, realistic perspective when looking at what’s happening. We are all hungry for good news right now, but the fact is, a slight month to month gain in sales isn’t all that significant. new-home sales totaled an estimated 36,000 nationally in June, which is more than the 33,000 of May, but it still represents a 21.3% drop from June 2008. That number comparing sales from the same month a year earlier is a far more meaningful measure than a month to month change or even a seasonally adjusted rate.
The power of a positive mindset is incredibly important, but staying realistic and current with todays market is invaluable. RE/MAX 4000 is steadfast in staying on top of the market trends of the Grand Valley and constantly aware of the absorbtion rate of the properties currently on the market. For further information on properties currently listed for your buying needs or if you are interested in selling your property. Call any of our 52 professionals to assist you.
Until next time…..RE/MAX 4000 TM
Some of the above information was obtained from “Profit Lines” by our RE/MAX International Chairman and Co-Founder, Dave Liniger.