Markets Are a National Health Thermometer

There were five million home sales in 2014, of which one million were new-home sales.

Interest rates are at historic low rates, and might even slide further, but there is also a drag on the market — low inventory.

You might logically think that low inventory and low interest rates would equate to higher prices, but, alas, that is not necessarily so. The missing ingredient is Buyers.

There aren’t enough to drive the market higher.

Why? Well, we fished out the pool over the previous several years and it takes some time to replenish the pool.

I have been a Real Estate Broker for 32 years, although I am now a “Boutique” Broker — I only handle the real estate of my friends. Real Estate is a market just like any other market, although it is one where normal people participate…without knowing they are participating in a financial market.

I hope that people do not know they are participating in a market. I hope they buy their homes because they love the looks, price and location. I hope they buy their home because it will keep them warm and dry.

That is because I am a Real Estate Broker. I am NOT an Investment Broker. I don’t know, or care if the market is going up or down for any particular client — I only look at the market overall because I care about markets in general as an American.

Markets are the thermometer for the health of the economy, and of America.

 

 

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