It's all over the news that our recession is over. Let's be real here folks.
They determined this because our economy grew 3 consistent quarters. It grew because of stimulus driven gains in consumer spending and home building which are now over. Household purchases may have climbed 3.4 percent nationally but we are a long way from where we should be. Here locally, according to the Willamette Valley Multiple Listing Statistics, 2009 is down 14% from 2008, 2008 was down 34% from 2007 and on down from there. So it isn't hard to climb a little after hitting rock bottom.
Can this be sustained in 2010 and generate the much needed jobs for those still unemployed? Will they give us what we need in revising the tax credit that was only given to 1st time home buyers? We are still waiting for information that will help us tremendously in 2010 so it is a little soon to believe we are out of the recession. I understand what they are saying so don't send me a bunch of hate comments. I just want to make sure everyone knows where we really are. I also don't think my definition of recession is the same as theirs.
Consumer spending accounts for 70% of the economy. Don't hunker down and not spend. I am reminding you to spend wisely. Spend with cash from your need vs. want list.
Grasp this cartoon for a minute. "Official" word on this recession report can't be confirmed yet. Robert Hall, head of the committee that makes this call out of the National Bureau of Economic Research said in August it may take more than a year for their group to reach this conclusion. Let's use this next couple of months wisely. Continue to get your finances in order. If you didn't get help or have someone review your financial picture because you were in shell shock, do it now. I have resources available for you if you feel like you are still trying to stop the bleeding.
This is the perfect time to pay down debt and get organized. I think we have all learned a lot of great lessons in this economy. It has been fantastic for my family. I'll have to tell you about that sometime. Get your numbers organized and let me help you.
Trudy Martin, Resident Lending Group will share how to figure your debt to income ratio Monday on my blog. You need to know where you stand currently and what your goals are. If they open up this tax credit to existing home owners you want to take advantage of it. You probably have already been long overdue down sizing and getting debt cleaned up and out of your life. To get a tax credit on top of it would be a double serving of icing on the cake!
Feel free to contact me directly anytime!
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