Guidant Financial Group Blog

Like the song that doesn’t end, the housing crisis seems to be plugging along … and along … and along. And, in all honesty, it is getting to be just as annoying as that song.

According to the Wall Street Journal, new statistics show that existing home sales have decreased for the second month in a row, while inventories continue to increase and prices continue to drop (see Home Resales, Prices Decline, While Inventories Increase).

The outlook for the economy right now isn’t good, but self-directed IRA holders may see this as a moment of opportunity. Median home prices have dropped 8% since April 2007 and, with tougher lending standards, having ready cash in a self-directed IRA can give many investors a decided advantage.

So, just like the song, there may be something good about dropping home sales. Just as those Lamb Chop puppets are annoyingly cute, the housing market – though often annoying -- can be still be an attractive investment option.