What can we as Real Estate Practitioners do to inspire confidence in our clients?
Buyers investing now, or sellers moving up, will likely be very happy they did a few years from now - but fear and procrastination, about the real estate market as well as their own ability to buy or sell now, is holding them back.
U.S. Labor Department Statistics indicate 63,000 jobs were eliminated by employers nationwide in February. In addition, they revised upward, from 17,000 to 22,000 the number of jobs slashed in January, 2007.
Here in Chicago and nearby, folks are reading the newspapers - uh, I mean, surfing the Internet - and are continually reminded of the far-less-than-optimistic economic news.
NYSE - Down 180 points on Friday, due, in part, to these latest employment numbers, and the ongoing march to outrageously-high gas prices. The U.S. Unemployment rate, though down 0.1% in January to 4.8% overall, may reflect the fact that many workers have GIVEN UP looking for new jobs. The fed expects the rate to increase to 5.3% before the end of the year.
The Federal Reserve Board appears to be taking action to address the situation. They will boost the money available to banks for loans by $100 Billion this month, after already increasing the available bank loan money to $160 Billion since December.
In January, the FED slashed their benchmark Fed Funds rate by 1.25% in an eight-day period, the largest, most aggressive cut since the early 80's. They plan another rate cut later this month. Comparatively little effect on the housing market, in Chicago and elsewhere, as a direct result of recent and considered rate decreases.
President George Bush admits, "It's clear our economy has slowed." He is hoping his Economic Stimulus Package, with tax rebate checks to individual taxpayers, and tax breaks for business, will jump start the U.S. Economy in the Second Half of 2008.
But, overall, consumer confidence appears waning. One such measure, the RBC Cash Index, last taken earlier this month, indicates a six-year low reading of 33.1.
What's the effect on home sellers and buyers here?
It seems, with our Team Seller and Buyer Clients, many sellers are discouraged by the prospect of lower eventual selling prices than they would like. Many of those that don't have to sell now, are planning to wait things out a while.
Buyers read, watch, or hear the news, and continue to wait on the sidelines, expecting even lower prices and better terms ahead. They see foreclosures increasing nationally, although figures here in Chicago are not so bad as in other places across the U.S.
Your shares on this are greatly appreciated!
See our post today via the Dean's Team Chicago Blog Center - BlogChicagoHomes.com- with links to Jeannine Aversa's article, plus relevant video, in the March 7th Edition of The Chicago Tribune.
DEAN & DEAN'S TEAM CHICAGO
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