Home sales info just came out this morning and they're UP smartly.... even though there is some "moderation" in housing price RISES... and that's because the inventory is up.
I put this house up for sale the middle of May and it sold in TWO HOURS for almost full price... and the only item I had to fix on the inspection was to have the A/C serviced. The buyer is all cash - no contingencies. This seems to be the "norm" according to my two buddies that are agents. I only mention this because of the real estate connection.
So what?
Well... to me - it sends up the old interest rate balloon. When people are borrowing - then interest rates TEND to rise with demand. Yet - we still have the federal government pledging to keep rates low.. We'll see how that plays out because nobody really knows.
In the meantime the "market" seems to be just going up day after day. Yipppeeee. BUT -- I'll remind everyone -- the market doesn't go straight up day after day forever. So remember these fantastic days when the market turns against us.
Personally I'm all in.... I have the lowest cash positions that I've had in a number of years actually. And for now - that's worked out really well. There's an age old saying - "don't fight the fed". Everyone I talk to says their business is MUCH better... that they learned A LOT about business and managing their overhead etc during the downturn - and that they intend to keep their fixed costs in check and increase their profit. But more importantly - they learned the value of having low debt. That has to be good for the country in general.
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