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Cramer Can See the Housing Bottom

Categories: Uncategorized | Posted: March 19, 2009

Ok, so maybe Jon Stewart showed his track record isn’t perfect, but here is what we’re seeing in our company.


  1. Traffic to our sites started going up right after Christmas.
  2. Contracts started coming in late January.
  3. Traffic has stayed consistent outside of a decrease in mid-February when the stock market went down.
  4. We as a company were 30% ahead of last year on March 1st based on the number of closings and pendings.


Should I buy now or wait another few months?  Good question, here our a few things to consider.


  1. Interest rates are fantastic, as of today they are below 5% for a 30 year mortgage (subject to underwriting, credit, etc.)  The Federal Reserve is going to extraordinary lengths to push down long-term interest rates, including home-mortgage rates. But those hoping mortgage rates will fall sharply from current levels, already historically low, may be disappointed. – Wall Street Journal 03/20/09
  2. Pricing is very good.  Materials and labor are down quite a bit.  It’s hard to imagine they could go much lower.  Several suppliers are closing plants until demand picks back up.  This will take some capacity out of the market, thus allowing pricing to stabilize at best and start moving up at worst.  A lot of trade contractors are working at break even prices just to stay busy.
  3. $8,000 tax credit for first time home buyers.  Unlike the tax credit of last year, this year’s version does not have to be paid back.


For those that have the means, now is a perfect time to buy when you look at the combination of interest rates and pricing.


Hopefully I’ll see you in one of our communities soon!!!


Matt Ivey

Caroline Ashe

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