With massive stimulus, tax breaks and low interest rates, the purchasing power for consumers is unbelievable. Now is the time when those who can afford to purchase a new home should do so. These people are seeing the best deals and will see the greatest potential for home value appreciation – a major factor in the psychology of home buying.
They are also helping to burn off the excess housing inventory in the market, and are generating revenue for Realtors, builders, mortgage companies, Home Depot, Best Buy and any other company that has a business cycle tied to the housing cycle. These companies will then hire back some of the people who were laid off in the downturn who will then start consuming other products and services. This job creation will create demand for housing and, once inventory reaches supply-demand equilibrium, then we will finally begin the first new housing cycle since 1992.
