A great time to buy
Watching coverage of the Christmas shoppers this weekend, I kept hearing the same line over and over.
Prices won’t get any lower than they are nw, so if you’ve had your eye on something NOW is the time to get it.
It’s the same line we’ve been hearing about real estate for almost 2 years now. Yet prices keep falling. Weird.
Economists and other smart people believe American consumers have the cash, they’re just hoarding it like the banks. T’ain’t true. Consumer spending has been fueled for the last decade-plus by home equity loans. As people’s home values kept increasing, they kept cashing it out to buy the latest crap.
Well, home values aren’t increasing any more. In fact, they’re declining. So now not only do they not have an extra $50k laying around for vacations and 60-inch plasmatrons, they actually have to start paying down their debt. Especially if they want to keep their homes.
It’s going to be a great time to buy for a while.
