Which do you want first, the good news or the bad news?

By
Real Estate Agent with Keller Williams Realty

 

Good News - Last month consumer prices fell by the largest amount on record, going back 61 years. (Airline prices fell by 4 percent!) The overall slide in prices reflects the big drop in energy costs in recent months. After hitting a record at $147 per barrel in mid-July, crude oil has fallen by $100 per barrel since then, pushing down the price of gasoline from a record $4.11 per gallon in July to $1.34 in the most recent Energy Department survey.  You have to love half price gas!half price gas, lancaster pa

Bad NewsFalling prices for goods and services might sound like a good thing for consumers, but it can hurt the economy.  During periods of deflation, companies earning less react by slowing production and cutting jobs, which can cause consumers to spend less. It's a dangerous circle.

 

 

 

Bad News - New building permits plummeted 15.6 percent to 616,000 units from 730,000 units in October. That was much below Wall Street analyst estimates of 700,000. This is an indicator of how the economy is doing; lots of building usually indicates a good economy.

Good News - In the long run, the slow down in new home construction could help U.S. housing market prices recover. Less new homes means less homes on the market, and inventory needs to shrink for housing prices to recover.

 

 

Bad NewsPrivate lenders have stopped offering loans that require zero money down. They are worried, and rightly so, that borrowers without equity are more likely to let their homes fall into foreclosure. Next year, the FHA will require a minimum 3.5% down payment on all new loans, up from 3%, and private lenders often require a minimum 5% down payment.

Good NewsUSDA loans are still allowing people to put zero money down. To be eligible for a USDA-backed loan, a borrower can't have income that exceeds 115% of the median county income, and the loans are restricted to areas with lower population density -- usually towns of no more than 25,000 residents. So there are many towns just outside of Lancaster City where this would apply.

 

 

Bad NewsIts snowy and cold here in Lancaster, PA; and not even winter yet.  I don’t really enjoy any of those things, I much prefer warm sunny weather.

Good NewsMy kids love playing in the snow.  We are safe and warm in our house(thanks, pellet stove).  We have plenty of food to eat, our businesses are doing well, and we are all healthy.  It doesn’t get much better than that! (unless we were all on a warm beach somewhere ;)

 

In all forms of media we hear plenty of bad news, and some good news.  Which one do you focus on? We know the media always picks the negative one because it gets ratings.  And don’t get me wrong, I am a realist.  But today I've decided keep my perspective on what is really important in life and count my blessings.

optimism, lancaster pa, lauren krady

 

 

 

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Ambassador
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Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

Hi Lauren, it is ALWAYS how you look at it. Problems are wrapped up opportunities if you just look at them differently. Great examples. Thanks!!

Dec 16, 2008 11:10 AM #1
Ambassador
534,899
Kate Elim
Dockside Realty - Spotsylvania, VA
Realtor 540-226-1964, Selling Homes & Land a

Hi Lauren...I always like my bad news first.  Save the best for last and leave me on a positive note.

Think about it, if everything is so bad it's bound to start getting better.  I'd rather think that way than not.

Kate

Dec 16, 2008 11:15 AM #2
Rainmaker
536,206
Kenneth Cole
Weichert Realtors Appleseed Group, 2043 Richmond Ave. S.I.N.Y. 10314. office phone 718-698-9797, Appleseedhomes.com... - Staten Island, NY
NYS Licensed Real Estate Salesperson

We've been there before, we'll come back.

Dec 16, 2008 11:55 AM #3
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Lauren Krady Lancaster
Keller Williams Realty - Lancaster, PA
PA Realtor

Gary you sound just like my husband, he is the ultimate optimist!

Me too Kate, I like to get the bad news over quick, like ripping off a bandage.

Dec 16, 2008 11:56 AM #4
Rainer
478,183
Not a real person
San Diego, CA

Bad news: Home prices were down for the fifth consecutive month here.

Good news: Home sales were up for the fifth consecutive month here.

Good news: 30% of San Diego households can now afford a median-priced home of $305,000, up from a mere 7% just two years ago.

Good news: 2008 was super for me and I expect 2009 to be even better.

Dec 17, 2008 02:04 PM #5
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32,457
Lauren Krady Lancaster
Keller Williams Realty - Lancaster, PA
PA Realtor

I hope 2009 is great for you Russel.  That is an incredible jump from 7 - 30 percent, I'm sure homebuyers are happy about that.

Dec 18, 2008 01:09 AM #6
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Lauren Krady Lancaster

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