Value was the theme of my last post, to which I would like to expand on. I obviously believe that there is much more to value than just price...but no one can argue that price is an important component.
Given prices importance in every one's decision making....what price is the best price? Is the price today at the best I will find? Or do I wait? Here are some facts.....that may help.
Inventories of new homes are now down to just over 8 months supply (from just over 10 months in May). Ideal inventories are in the 5 month supply range. The percentage of the real estate board activity in foreclosures has dropped again. Starts of new homes in West Michigan are at 16% of their high level for the area (along way from where they were..so less homes..and less inventory being built). Some mixed signals, but some things that may shed light on where pricing may go.
Interest rates have moved up from their lows from around 4.78% to around 5.25 right now.
Unemployment remains high....too high....Grand Rapids is now around 11.7% (up 5.6% from last year). Goodness knows....for things to get a lot better...in all areas of the economy...we need employment to start picking up....and that may take a bit.
All in all the price you pay right now will most likely be as good as you can find...and ultimately...given the right location and the right floor plan and features....will be the best value you will find for you and yours, for many years (hopefully ever ) to come! The value for you, is what return that you get from the home...is it right for you, your family, and at the right price....value is...like beauty...in the eye of the beholder.
Monday, July 27, 2009
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