Quote of the Day:

“Is the glass half full or half empty? It depends on whether you are pouring or drinking.”

In this market, there are two glasses in front of us.  One is pretty full and one is almost empty.  The pretty full class stands for the amount of inventory available for purchase while the almost empty one represents the low home prices and low interest rates.  If you read yesterday’s post you saw how remarkably low interest rates are.  When you pair that with low home prices, homebuying is very affordable – In fact 64% of adults can now afford to purchase a home – compared with 25% a few years ago. 

As people take advantage of this buying opportunity, that action will effectively pour some of the “inventory” water into the “low price” water glass.  This will slowly raise interest rates and housing prices.  In tomorrow’s post, you will see that a 2% gain is expected in 2011.  Nothing big, but a sign that we are now just a tad past the bottom of the market.

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