Who do you believe? We can listen to the main street media and take on the attitude the current economic nose bleed will last forever - or at least they make you feel that way. Or we can look at some other indicators which might cause us to stand up straight, throw our shoulders back and feel optimistic about what lies ahead!
For instance, I had an article sent to me recently: "Decision Analyst U.S. Economic Index for December Holds Steady, Signaling Economic Recovery in 2009". The index is a leading indicator on where our economy is headed. And according to the article it says, "The U.S. Economic Index has remained stable for the last nine months of 2008." Meaning what? According to this article, we will see our economy find its bottom mid-2009.
Additionally, in late December, an article was published by Realtor Magazine showing an increase in mortgage applications: Refinances accounted for 62.6 percent of the applications while mortgages to buy new homes increased a "seasonally adjusted" 10.6 percent.
And January is typically a slow real estate month in Atlanta. However, as soon as we said good-bye to the Holidays, my phone was ringing (which was music to my ears). Buyer's Agents were out with their clients looking at property and the cycle has continued....slowly but it has continued.
So what does this all mean? In my opinion, if we take the news that also came out last week saying the Feds plan to buy mortgage backed securities which should drive interest rates as low as 4.5 percent and add this to the slow trickle of activity taking place NOW along with the steady tick from the U.S. Economic Index plus the increase in NEW mortgage applications, we should have the perfect recipe for a housing market recovery which will then translate to having a positive effect on our economy in 2009! So...Stand up straight, shoulders back...and...SMILE!!!
Realtor Magazine Article: Source: Mortgage Bankers Assoc. & Market Watch (12/24/08)
