Wealth-Coaching

More news on the real estate investment front: Just when it appeared that the sub prime market had finally bottomed out, there is more bad news on the home sales front. Yesterday, the stock market jumped as many felt that the credit crunch was over. The idea that the Fed was going to cut interest rates again, combined with the banks loosening their purse strings a bit has many investors looking to make rebounded gains in the market. Well, you can pretty much shelve that idea for at least the next few months because the index that is used to forecast near term housing sales did not look good.

Not only did the index come back with some bad news, it also showed that near home sales have dropped to record lows. Incredibly, sales dipped 6.5 percent in July, and have fallen an astounding 21.5 percent for the year. This will push home sales even lower. This is good news for the home buyer, but they may not be able to capitalize on the market because banks are willing only to give out the safest loans. This could mean that the housing market will stay in a rut for at least the next few months and this will undoubtedly have an affect on the stock market as a whole. This is not good for those looking to make a real estate investment.