Economic Ramblings
Foreclosures are still in the news, but some positive signs for Nov. US figures-we are up 68% from 2006, but down 10% from October. As for GA, we are now #7 in the US, dropping 21% from Oct (up "only" 27% from 2006, stats from realtytrac.com). What's this mean? BUY A HOUSE! Why do we still have so many fence-sitters? No clue as we have low rates, high inventory, motivated sellers, so go figure? I still think the media needs to shut-up and let some positive vibes flow! Reports? The Fed did drop rates a quarter but the R word still threatens. The Fed also dumped some $ into the system so that banks have more money to lend. This is important so that banks can obtain $ w/o looking 'weak' (which would further damage consumer confidence). Retail sales have been 'okay' but people keep waiting for 'the big sale', though I think we've seen the best pricing. Perhaps sales will be down and there will be 'fire sales' before year-end so you can spring for a larger TV... The National Association of Realtors thinks that existing home sales will rise in 2008, but new homes won't see much recovery until '09. I actually think new home sales will start to rise in '08, but the bad news lies in the fact that builders still have excess inventory & homes will continue to sit until Summer. Rates should still remain under 7% which blows my mind (remember the Carter era?) but the key thing to remember is that we live in GA, our prices are reasonable, living costs low, & living standards great! New regs? Check out what the FED has in mind here.
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