Monday, January 30, 2006

Housing Supply Building Quickly... Will it Cause the Real Estate Bubble to Pop?

Today in BusinessWeek there is an excellent article regarding housing supply and a possible housing bubble. The article indicates... "During the second half of 2005, the supply of new single-family houses available for sale has been growing at the fastest pace since the mid-1980s" while "Making matters worse for homebuilders is a surge in the number of existing homes for sale, up 20.6% from a year ago. The rising inventory will suppress overall home price appreciation".

What is important to those thinking of selling your home FSBO is that you can be at a distinct advantage because as inventory expands there are more listings competing against each-other. Selling FSBO allows you to price your home (1-2%) less than the surround real estate listings for sale with REALTORS making your home more attractive and possibly selling faster, thereby saving you mortgage interest and time.

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