What happens to a market when you take away or threaten to take away the artificial sweetener of free money?
Answer: You get less Buyers
What happens to a market when supply increases more than demand?
Answer: Prices go down
How many owner occupant homes can a first time buyer acquire (and get the stimulus money)?
Answer: Only one obviously
If you were a rational buyer and wanted to buy a home and you had the means would you take advantage of the $8,000?
Answer: Yes of course
These simple Economics concepts can tell us what is happening in most real estate markets. Prices are going to go down as artificial stimulus is withdrawn, first time buyers demand is pulled forward and supply increases.
Invest wisely as opportunities in 2010 could make 2009 look like an appetizer
Good Investing
Wednesday, January 6, 2010
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