A vanishing glut of exiting homes and increased affordability set the stage for a housing comeback.
In his recent article for CNN Money’s Fortune, Shawn Tully uses a variety of sources, trends, and research to support his opinion that housing is back. Tully’s main points include the major reversal in the housing glut and the increase in affordability.
The reversal of the housing glut can be attributed in part to the historic drop in new home construction. Even in distressed markets — such as Phoenix, Las Vegas, Miami, and parts of Northern California — the “the outlook is brightening” because of the “tiny supply of new homes entering the market,” Tully writes.
In contrast to the days of overinflated home values, homeownership has made a huge recovery in terms of affordability. Tully reports: “In 28 out of 54 major markets, it’s now cheaper to pay a mortgage and other major costs than to rent the same house. What’s most compelling is that in all of the distressed markets, owning now wins by a wide margin — a stunning reversal from four years ago.”
Due to increased perceived risk of owning, renting became highly attractive and demand for existing homes tanked. But with lower existing home inventory, increased job growth in many markets, and historic affordability, homeownership is due for a huge comeback.
Of course, buyers have to feel comfortable with the market’s direction in order to put their own money on the line. That’s where education comes in. Every word of Tully’s article equips sales professionals to address consumer fears and increase their confidence.
What will you do to help your customers come out of the recession of their mind?
Jason Forrest is a professional sales trainer, coach and speaker specializing in new home sales. He is the author of Creating Urgency in a Non-Urgent Housing Market and 40 Day Sales Dare for New Home Sales. He can be reached at jason@shoreforrest.com and his website is www.jforrestgroup.com.

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