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A House of Cards?

By
Real Estate Agent with The Hudson Company Winnetka and North Shore

Yes, the U.S. economic recovery is quite fragile at the moment.  There are still major concerns regarding the debt restructuring in Europe.  The war in Afghanistan continues to rage...as well as drain our economy of much needed resources both in dollars and in human capital. The Iranian nuclear threat is sending shivers throughout the world.  The partisan activities of Congress are an anchor on economic progress. All of these factors are clearly placing a level of uncertainty in the minds of Americans.

However, the employment situation is clearly improving.  The stock market, which is often a reflection of confidence in the economy...or a lack thereof...has steadily improved and the volhouse of cards?atility of the past few years, which is a genuine destroyer of confidence, has not been present.  Thanks to the strategy of the Federal Reserve, interest rates are at incredibly low levels.  Lenders claim that they are making capital available to borrowers.

 

(photo courtesy of Plu_Plu photostream  http://www.flickr.com/photos/paulaguinto/5609603207/in/photostream/)


While much of America was experiencing the “deer in the headlights” feeling during the first years following the banking crisis and subsequent stock market “crash”, this too has passed.

Americans are beginning to feel more confident.  While it appears that the luxury end of the retail market was the first to show signs of strength, this confidence seems to be moving down through the supply chain to include Americans at all income levels.  

One must remember that all housing markets are “local”.  What is happening in Winnetka and Wilmette may be very different from what is happening in Toledo or Portland.  

On the North Shore, the spring real estate market has brought more new buyers to the market than had been seen in many years.  These buyers are telling us that they are coming to the North Shore housing market because the combination of greatly reduced prices and incredibly low mortgage rates are providing an opportunity that had never before been available to them.  Many are also telling us that they are finally able to sell their houses, townhouses and condos in Chicago...(or in Charlotte or Santa Monica)  which seemed an impossible task just a year or two ago.

Yes, the world economic condition is fragile, but at the same time, it appears to be stronger than at any time in recent years.  It’s a very deep hole and we are trying to dig ourselves out.  It took many years to get us in the trouble we were in.  

While the economic recovery is fragile and vulnerable to a variety of factors, we’re beginning to see the light at the end of the tunnel. 

House of cards?   We hope not!





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Susan and Howard Meyers

The Hudson Company

851 Spruce Street

Winnetka, Illinois  60093

847.778.1394

howard@susanandhoward.com

 

Comments (8)

Angela Lyons
REAZO - Missoula, MT
Reazo.com for home buyers and sellers.

Remember that old saying about the light at the end of the tunnel being an oncoming train? I hope you are right but I fear you may not be. When (not if) Israel attacks Iran, the following oil embargo will spike gas prices here, which will have a big effect on our recovery. Syria also continues to be a troublesome and potential problematic piece of that part of the world.  

Unfortunately i agree more with the first part of your blog. I hope your optimism proves my pessimism incorrect. I guess with some time, we'll find out.

Feb 16, 2012 01:43 AM
Howard and Susan Meyers
The Hudson Company Winnetka and North Shore - Winnetka, IL

Grant...I hope I'm right also!

Feb 16, 2012 01:58 AM
Jark Krysinski *PREC (Personal Real Estate Corporation)
REMAX CREST REALTY WESTSIDE - Vancouver, BC
TeamYVR Team Leader, BA,ABR,IRES,IMSD,LLB

Good morning Howard! I couldn't agree you more! You are so right! "The housing markets are "local"! I always tell my clients find a realtor who really know your neibourhood. Only a realtor knows your neibourhood very well can find the perfect home for you. Thanks for sharing with us!

Have a good day!

Feb 16, 2012 04:33 AM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Howard and Susan:  I feel much of what you express here too.  We can choose to look on the positives ... or the opposite.  I don't constantly want to be stressed out ... or be looking for ways to feel that way.  I'm not saying stick your head in the sand.  Just deal and worry about those things you have some control over.  Whether short or longterm ... I'm enjoying ... and trying to build on the positives and momentum we are presently seeing.  I choose to see the brighter side and enjoy the respite.  Should things change, I will face and tackle the problems before me then.

Glad to hear that you are sensing positives too ...

Gene

Feb 16, 2012 09:28 AM
Howard and Susan Meyers
The Hudson Company Winnetka and North Shore - Winnetka, IL

Jack...thanks for the kind words....and you have a good day too.

Feb 16, 2012 12:27 PM
Howard and Susan Meyers
The Hudson Company Winnetka and North Shore - Winnetka, IL

Gene...it seems that more often than not, we're on the same page. 

Feb 16, 2012 12:28 PM
Jerry Newman
Brown Realty, 210-789-4216, - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Hi Howard and Susan. Yes, our economy has been fragile, and it appears to be working it's way out of all these challenges we have face in the past few years. But, I am glad that the interest rates are still low, more jobs are developing in Texas and across the country too. Consumer confidence is beginning to rise again. This might be the year of a major break through in housing too.

BTW, I just checked out your Facebook Page too.

Feb 18, 2012 07:27 AM
Howard and Susan Meyers
The Hudson Company Winnetka and North Shore - Winnetka, IL

Hi Jerry.  Thanks for stopping by.  Yes, we're seeing a major uptick in confidence.  Lots of showings and large attendance at open houses.  We think this will be the year.

Feb 18, 2012 10:46 AM