Princeton Town Topics – Let’s Talk Real Estate – August 1, 2007
HOUSING UPS AND DOWNS
Real estate is cyclical, with continuing ups and downs. The current housing market is tipping into a downswing, but it will not lead to an economic calamity, reports the National Association of Home Builders. This is largely because interest rates are remaining historically low, the overall economy is still moving ahead positively, and builders are reducing their unsold inventories.
The NAHB is now forecasting a drop in housing starts this year. This decline in new housing should slow down to a production level of about 2 million units by 2008.
Even though the market is heading into the down side of the cycle, real estate over the past 50 years has proven to be one of the strongest long-term investments available. The demand for real estate is always expanding fueled by the ever-growing population and immigrating families.
With the help of your Realtor, you can always find a property with solid investment value in any climate.
