Housing starts increased by 7.2% from the prior month but are still well below pre-crash levels. Levels are close to record lows. Right now we have a surplus of housing inventory but consider the fact that not a lot of houses are being built and the population is increasing. Eventually we will need more inventory.
What does that mean? It's getting to be a good time to invest in real estate. Buy low and sell high. When everyone is ready to give up on an asset class is the time to begin eying it. My only caution with housing now is the fact that the mortgage interest deduction may become a casualty of budget cutting. If this happens, then housing prices could drop another 10-20% easily. That would make the bottom of the market.
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