A Bubble Or a Value???

A bubble Or a Value?, from Motley Fool, reports on the national housing market and the inventory glut facing homebuilders nationally. The article suggests that the glut of inventory homes may not be as large from a historical perspective, citing that the number of homes on the market at the end of July was 568,000, about a 6.5 month supply. That's lower than the 11.6 months supply back in April 1980, or the 9.4 months supply in January 1991. The article says since supply is by no means excessive and the key to what happens next lies with buyer behavior. Personal incomes are rising at the fastest pace in six years, and with falling home prices and still low interest rates, homebuyers still have the ability to purchase. The article summarizes by saying that the housing market still looks pretty sound, notwithstanding this period of softness. With the big discounts builders are offering, now is the time for buyers to make their move and get off the sidelines.





http://www.fool.com/Server/printarticle.aspx?file=/news/commentary/2006/commentary06091903.htm