I don’t know about you but I am ready for some good news about the Real Estate market especially since in one way or another it touches all of our lives. Ever since the economic tsunami that sent property values into a tailspin we have witnessed a number of assaults on our personal wealth and home equity, all of which has created total devastation for some and a “hunker down” mind set for others. This article is not intended to be anything but a statement of the obvious which is the simple fact that there remains much more hard work, as well as hope and trust that the actions of 2010 will produce positive results in 2011 especially in relation to the housing market.
The economic “big picture” outlook for 2011 appears to have somewhat stabilized from the extreme crisis of 2-3 years ago. In the United States the GDP (Gross Domestic Product) is up approximately 3% from where it closed in 2010 and the projections are that we will see some growth in our exports toward the latter part of 2011. If this occurs then the manufacturing sector should start to see some investment in growth and some expansion in the labor market. We need to keep the overall big picture in mind and realize that some risks and investments will succeed and some will fail, but overall if manufacturing companies see a higher demand for their products, then they will need to increase their employment force to meet the demand.
So why does a real estate guy want to talk about the economy and jobs? It is because both are tied to the real estate market and we need them both to improve in order to have a vibrant housing market. The reality is that the job market is a work in progress and initially it will be simple “baby steps” that will bring about the stability we need in all markets.
As employment improves, so will the housing sector all of which will bring about an influx of first time homebuyers. This should start to evidence itself more toward the spring and summer of 2011.One key factor to remember is that real estate markets are driven by their own local employment figures, so some areas will see improvement quicker than others. However, improvement will come to those regions where employment improves and on that you can be sure.
We have to understand that good economic news can be a double edged sword and it can lead to higher interest rates which will be the subject of my next newsletter. I will be focusing on a bit of a forecast for home prices and the continued impact of foreclosures, short sales, and government legislation on the housing industry.
In the meantime, be sure to take advantage of low housing prices and the low interest rates if you are in a position to purchase or refinance a home. Remember, I am always available should you need assistance or advice on matters of Real Estate. I can help you no matter where you are located in California. My alliance with Century 21, the largest brand name in the Real Estate industry, as well as Century 21 Select Real Estate, one of the larger companies in Northern California, can offer you enormous advantages that you always have with our relationship together.
Written by:
Mike Southwick
Use only by permission
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