May 23rd, 2019 4:05 AM by Eric Willner
Radio Show Notes 5.22.19 Wednesday: Saving vs. Investing - The Midweek Report
By Eric Willner, Host of America’s longest running Radio Show about Real Estate
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Saving vs. Investing continues to be the main topic this week on The Real Estate Show, and today on the Midweek Report we highlight the importance of that distinction while revealing the latest numbers, according to the National Association of Realtors(NAR).
To some surprise, total existing home sales saw a small decline to finish the month of April, continuing March is small drop in sales. Two of the four major US regions saw a slight dip in sales. Only the west saw growth, and the Midwest essentially it was flat last month.
Lawrence Yun, NAR’s chief economist, said he is not overly concerned about the 0.4% dip in sales and expects moderate growth very soon. “First, we are seeing historically low mortgage rates combined with a pent-up demand to buy, so buyers will look to take advantage of these conditions,“ he said. “Also, job creation is improving, causing wage growth to align with home price growth, which helps affordability and will help spur more home sales.”
The median existing home price for all housing types in April was $267,300, up 3.6% from April 2018 ($257,900). Aprils price increase marks the 86th St. month of the year over year Gaines. Total housing inventory at the end of April also increased with more homes available for sale then in March. Unsold inventory is at a 4.2 month supply at the current sales pace, up from 3.8 months last months and up from 4.0 months last April. We are also seeing the effects of saving vs investing.
These figures should actually be good for the marketplace. As inventory levels have steadily improved, that will provide more choices for people looking to buy a home. This encourages more buyers when there are more options, plus they’ll realize that the price growth has slowed down and moderated a bit. Furthermore, college student debt continues to hinder millennial homebuyers. To some this presents a dilemma regarding their ability in saving vs investing.
For the sellers side of the equation, when placing their home on the market now, home sellers will need to be more realistic and aware of the current market conditions if they want their properties to move. Both of these factors should bode well for the market in the months ahead.
Meanwhile, properties remained on the market for an average of 24 days in April, which is significantly down from 36 days iIn March, and also down from 26 days a year ago. Fifty-three percent of homes sold in April we’re on the market for less than one month.
NAR’s chief economist, Lawrence Yun, Made an interesting remark in the report: “Given the record high job openings in the construction sector, some may want to take a gap year to work there and save, and they are by lessen the student debt burden.”
This is interesting, especially in light of our theme this week of “saving vs investing”. While that may be an interesting and logical suggestion, it will probably be met with more psychological resistance from a college graduate wanting to go directly into their chosen field. Logical idea, but probably won’t happen.
Remember Eric Willner, The Host Of The Real Estate Show, often repeats that real estate is “the ideal investment”. This week, he has also been saying that it is both a savings AND an investment, achieving both goals. It is., and it does. By purchasing a home, and systematically paying down an amortizing mortgage, is in fact a forced saving. Plus, the home’s appreciation over time serves as a solid long-term investment. See, real estate is BOTH, a saving AND an investment. That may be a better recommendation, and one that might be more palatable, and more likely to be acceptable to a millenial.
That’s because real estate is by far, the best solution to this problem. And it starts with homeownership. And that’s why I am going to keep referring to our special website www.90dayfreshstart.com – regardless of student loans, credit scores, or down payments. Go check that website out now, And tune back in again tomorrow for a continuation of this week’s incredibly important topic: Saving vs. Investing.
Do these things, and transform your retirement years into the income source you dreamed of. Find out more on today’s episode and learn more about Real Estate Investing and learn HOW by listening to The Real Estate Show with Eric Willner , Live every weekday morning at 8 o’clock (EST) on Florida’s Money Talk Radio station WSBR AM740, FM 96.9, and FM 103.9. You can also hear us on the free apps: iHeart Radio and TuneIn. Recorded Rebroadcasts are available 24/7 on Facebook. Please share our Facebook updates.
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Then check out these EXTRA cool resources:
90DayFreshStart.com for The Steps to Homeownership for Everyone
TimeToFixMyCredit.com for Financial Education and Credit Improvement
AutomaticLandlord.com for Landlording and Real Estate Investment
MackBuysHouses.com for a fast cash offer on Real Estate
MackSellsHouses.com for great deals on Real Estate Investments
MackBargainHouseHunters.com to Partner on Real Estate Deals
Eric Willner is the Host and Founder of The Real Estate Show, an informative show about how to buy, own, and improve real estate the right way. You can reach Eric Willner at Eric@Ericwillner.com or 888-595-7779.
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