Economic Ramblings

Well, things are still not stellar. The economic stimulus package has passed, checks will be in the mail in May (sure!) Whatever are we to do until then? It seems that many people are predicting a continued slump in the first quarter-negative growth has even been mentioned. I am still cautiously optimistic about things picking up in the Spring. There are still a lot of "fence-sitters" out there, waiting for the "bottom". I chided a renter recently, telling her to buy buy buy! I was told 'Why should I try to catch falling knives?" She is convinced that prices will continue to drop. That may happen as there is still a decent amount of inventory out there and increased foreclosures mean even more homes on the market. However, I still feel that January was one of the best times to have purchased a home-rates were at incredible lows and prices were still very low. Rates have bumped up a bit, but we are still hovering around 40-year lows! Stockbrokers always say you can't predict (or time) the market-that's what buyers need to do now: BUY. A new issue? Banks are tightening credit. Nothing like an over-reaction to put the brakes on the economy! Yes, stupid loans were made. Yes, credit was extended to people who shouldn't have bought. But now, even people with good/average credit are being put through the wringer. It is taking longer to get people approved and to get them to the closing table. People are in trouble and "short sales" are all the rage. Time will tell. Hang in there...