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It’s the Economy, Stupid…

By
Real Estate Agent with John L. Scott Real Estate / Yelm

I hate to borrow a line from Bill Clinton, but it just seems too appropriate not to.

The DOW has had an average monthly gain of 636 points for the last 4 months. (3/2/09 it closed at 6,626.94 and 8/1/09 it closed at 9,171.61).  During trading today, I saw the DOW at 9,490 as the momentum keeps marching on.

Residential Home Sales in Skagit County with transactions "Pending" gained 37.93% comparing June 2008 with June 2009, according the Northwest Multiple Listing Service's Monthly Recap for June 2009.  June 2008 had 116 residential homes with transactions "Pending", June 2009 had 160 residential homes with transactions "Pending")  The same report shows a 22.77% gain in Pending Sales across the whole NW Multiple Listing Service, which represents the bulk of the State.  Way to go Washington State!

The Federal Government's "Cash for Clunkers" program is so wildly successful that they nearly used up the One Billion Dollars in the first week of the program. At the $4,500 maximum per car, this represents over 220,000 "clunkers" traded in on more efficient cars. Wow!

Positive momentum is here!  There can be no doubting it anymore!

The economists always say "Buy Low, Sell High."  Well, it seems that we have reached the low and are starting to go up again.  The "Time to buy" is here.  Whether you're looking to buy a house, a car, or some stock; do it soon.

Robert Rauf
CMG Home Loans - Toms River, NJ

Bill, the economy has always had its ups and downs, everyone seems to forget that!  

Aug 21, 2009 04:54 AM
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Oh there are still many with doubt. While the government's printing and borrowing has obviously created positive spin to the markets, it's artificial; and the fundamentals are weak. With millions unemployed and millions more facing foreclosure, I believe that any "real" recovery is still in the future.

Aug 21, 2009 05:00 AM
Bill Sauneuf
John L. Scott Real Estate / Yelm - Mount Vernon, WA

Robert - Exactly!

 

John - Positive momentum is here!  The trends that correct the fundamentals are in place.  Before companies can begin hiring again, consumers must start buying stuff again.  The buying of cars for example has already caused a surge in production which saves jobs on the brink or hires some of the auto-workers back.  The positive momentum is here!  If it continues, then the unemployment numbers and the other fundamentals will improve.  It starts with consumer spending and that is happening!

Aug 21, 2009 05:20 AM
Robert Rauf
CMG Home Loans - Toms River, NJ

Bill & John, keep in mind that 70% of our economy is the consumer, we need to keep them happy!!!

Aug 22, 2009 05:56 AM