Wait…aren’t we experiencing a housing surplus across the country? There’s a foreclosure or short sale on every corner and people are still trying to sell their homes in this difficult market.

According to wacky money man, Jim Cramer of CNBC’s “Mad Money,” the country should prepare for a housing shortage sometime in 2011.  He recently appeared on NBC’s Today Show and announced that America will be doing an about face on what people have become accustomed to seeing over the past five years. 

His reasoning is that with only eight months of housing inventory, buyers will find a smaller list of homes to choose from and the market will experience a housing shortage by 2011.

Backing up Cramer’s claim is an article in Forbes Magazine back in February 2010. According to Brian Wesbury, chief economist at First Trust Advisors, the new home building stall may cause more issues down the road.

In an interview conducted by Steve Forbes, Wesbury said, "We need one and a half million houses per year just to keep up with population growth.  And then if you throw in, you know, fires and tear-downs and just worn-out properties, we need 1.6 million or more per year. Right now, we’re down to about six and a half, seven months’ inventory whether you look at new homes or existing homes."

If a housing shortage isn’t enough to consider, think about what rates may look like in 2011. Economists are saying that the deep lows we are currently experiencing aren’t going to last.

The country is currently at a turning point amid the recession. While we are still experiencing hardships and setbacks as a result from the Great Recession, some portions of the country are seeing relief, prompting many economists to believe that recovery is on the way.

What’s the best plan of attack if you are considering purchasing a new home within the coming months?  Obviously check your credit score and take the necessary steps to become fiscally fit.

Next, get pre-approved for a loan. Loan pre-approval will act as your road map to home ownership—not only will you know exactly how much you can afford, but you will also have the confidence knowing that once you’ve found your dream home, you can act quickly.

At AmeriFirst, we make getting pre-approved easy for you.  You can stop by AmeriFirst, call us at (800) 466-5626 or complete an online application.

Investopedia
http://stocks.investopedia.com/stock-analysis/jimcramer/CramersMadMoneyRecapTheHuntforProfitsUpdate3.aspx

Forbes: Housing Shortage Coming in 2011
http://www.forbes.com/2010/02/13/wesbury-housing-starts-intelligent-investing-real-estate.html?boxes=Homepagelighttop

Link (deep lows): Current Rates
http://www.bankrate.com/