WILL THE MARKET IMPROVE BY THE END OF THE YEAR?????
ACCRODING TO LARRY YUN OF THE NATIONAL ASSOCIATION OF REALTORS HE GOES OUT ON A LIMB AND SAYS YES AND HERE IS WHY:
1. THERE IS A PENT UP DEMAND WITH NEARLY 4 MILLION NEW JOBS SINCE THE DOWN TURN OF THE MARKET IN THE MID 2005 AND THE AVERAGE WAGES HAVE RISEN ABOUT 7%. THE HOUSEHOLD INCOME HAS RISEN TO 56.2 TRILLION AS OF THE FIRST QUARTER.
2. A TYPICAL FAMILY GROWS ABOUT 1.5 MILLION A YEAR BUT FOR THE FIRST QUARTER IT HIT 1/2 MILLION. IT SUGGESTS THAT PEOPLE ARE HOLDING BACK DUE TO THE UNCERTAINTY OF THE MARKET WHICH RESULTS IN PENT UP DEMAND.
3. RENTS ARE ON THE RISE WITH THE HESITATION IN BUYING THE RENTERS ARE FEELING SQUEEZED SO BUYING IS LOOKING MORE AND MORE INTERESTING.
4. BACK TO BASICS WITH MORTGAGE LENDING THE 100% LOANS ARE VERTUALLY GONE AT LEAST FOR THE PRESENT, REMEMBER FHA FINANCING? LOOKS PRETTY GOOD NOW.
5. OUR FALLING DOLLAR BRINGS BIG INTEREST TO THE FOREIGN INVESTOR... TEAM THAT UP WITH THE FALLING PRICES, EUROPEANS CAN NOW AFFORD THAT SECOND/VACATION HOME, REMEMBER THE INTEREST RATES REMAIN UNDER 7% IN TODAYS MARKET.
6. INFLATION LOOKS STABLE AND COULD SLIDE IF THE FEDS CUT THE INTEREST RATES. SO ALL IN ALL THE BUYERS WHO CONSIDER INVESTIONG NOW COULD HAVE A BIG SMILE ON THEIR FACES IN THE FUTURE.
DENNIS LINDSAY
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