Bob O'Brien
Head Instructor
bobrien@mywealth.com
The November real estate numbers came out today and they were not very good. The median average price in the U.S. for a home dropped from $208,800 to $181,300, a 13.2% drop from last year. Inventory is still rising going from a 10.2 month supply of homes to an 11.2 month supply. Which means it would take 11.2 months to sell all the current properties for sale. In a stable real estate market this number is about 6 or lower. Nearly 50% of the activity in the market was buyers of distressed properties according to the National Association of Realtors. Analysts and economists feel strongly that these big drops are the result from the credit crisis this Fall.
These are important numbers to the overall health of the economy. They will be the numbers to watch for the recovery of the stock market and the economy. The stock market is a leading indicator of the health of the economy. In other words, stock market will do poorly before the economy goes into recession, and the stock market will do well before we are out of the recession. This makes sense due to the fact that a stocks value comes from its earnings. Check out Sean’s article: http://www.mywealth.com/blog/post/sectors-economy-may-turn-first-after-recession for a in depth look at some great strategies.
Remember Real Estate is not the only way to build equity and ultimately wealth. So, check out our courses where we can teach you how to save and invest.
Happy Holidays!
Bob O’Brien
Sr. Instructor
