Home Prices Impact The Economy In Many Ways!
When homes prices are falling and they are continuing to fall, builders don’t start new projects. All industries related to home building are at a stand still. Lumber mills, steel mills, window manufacturers, etc. are all doing much less business and laying off workers. I believe the housing industry is the most important industry in the country. People feel less wealthy and spend less, therefore less cars are bought and other big ticket items.
Your home is the largest purchase you will ever make and if its’ value is declining if effects everything else in the economy. Confidence in the future is eroded. People tend to travel less, plan for the future in more conservative ways, save more money.
It will take time to reduce inventories so that prices can stabilize. Right now there are multiples of like properties that are available to potential buyers. These have to be reduced considerably before we can see price stabilization.
If you are currently thinking of selling, you should price your home ahead of the market. In other words, price your home less than the last sale. It is the only way to sell and control the market.
If you are thinking of buying, check out my property search and see the actual great deals which will be even better when you make your offer!!