Sorry folks, if you were taking solace in the “improved” home sales data this morning, I would caution you to think otherwise. Of course, with some houses pricing at 50% of their previous levels or lower due to foreclosures, you would expect buyers to show up.
However, this is small consolation to this economy. This same economy that gorged on its own home equity to purchase all kinds of ridiculous luxuries ($60,000 kitchens, $60,000 cars, and $600,000 second homes). People making $50k a year were buying kitchens that cost MORE than their entire year’s salary just because they have the home equity to do this.
Here is an interesting post from “Calculated Risk analyzing today’s housing data:
My only advice is get some cash ready – be ready to buy all kinds of assets from dumb people over the next few years. These types of assets could include – nice used cars, nice used (barely) houses, vacation homes, collectibles (as people sell them to pay off their credit cards), tools, appliances, furniture, etc.
Also, I want to reiterate my past post on considering investing in solar power (among other ways to cut costs and “personal inflation”) for your house. As I outlined, it might MAKE YOU MONEY if done right.
Keep your head up out there…