Well, at first it was only the "hottest" markets that were slowing. But now, it appears that housing sales are slowing nationwide, according to the Wall Street Journal.
How can we tell that the market is slowing? Well, there are a trio of factors that point in that direction, including more housing inventory available, slowing sales (including a longer time on the market) and increasing incentives by new home builders. So, this looks like the correction that many have been predicting. The question is: will the correction be "soft" or "hard"?
Now that the cooling is upon us, no one appears to want to say "hard". The good news is that our economy is doing well, despite what's happening in the housing sector. The US is still creating new jobs and consumers are still spending. Many analysts are saying that a cool down will happen without sending the economy south.
Keep in mind that interest rates are still on the rise, and this could still strengthen the impact of any downturn in the housing market. But it does look like the "bubble" isn't a "bubble".
Have to admit that I'm happy about that. Even if the wife and I don't sell this year, we're likely going to sell soon. While any gains in value are just "paper" until you sell, it would be nice to keep that equity.
Michael
