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Monday, September 13, 2010

Opportunity

Now is the time!!  Interest rates are going to start that slow creep - UP!! 
Let's talk - America is still growing, we need 'X' number of new homes to be produced every year to keep up with population growth.  Over the last couple of years people have not been buying new homes because they have been nervous or scared about economy, their job status or what was going to happen to the value of their new home after they purchased it. 
That was then and this is now!  Depending on who you are listening to, American companies have some where around 2.5 to 3.5 trillion dollars they are sitting on.  Yes - you heard me correctly - 2.5 to 3.5 trillion, with a 'T' dollars.  In the fourth quarter these companies are going to start using that money to create value for their companies.  As a CEO, your responsibility is to create value for your share holders and nothing else.  You are going to see expansion and job growth.  Next year is going to be - not a good year but a great year.  The housing market will be back!  Yea Builders.  You see there is going to be such a demand for housing that the builders who did make it through this down turn are not going to able to keep up with the demand.  There will be a shortage of lots towards the end of the year and the basic law of economics will kick in.  You know the one - Supply and Demand.  What happens next is an increase in prices.  Will there be parts of the country that lag behind? Of course, but those places that have substantial job increase or have industries which are going to benefit from up tick in the economy will see their home prices increase.  Hopefully the builders do not create another bubble, but the one thing you can be sure of, is price increases.  Get ahead of the curve and "BUY A NEW HOME NOW'