Real Estate Update

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03/13/2009

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Home sales finally experienced an increase in the final month of 2008, thanks to many markets in Arizona, California, Nevada and Florida. A signifi... (More) Home sales finally experienced an increase in the final month of 2008, thanks to many markets in Arizona, California, Nevada and Florida. A significant wave of new homebuyers, echo boomers (the children of baby boomers), are beginning to make up the next major demographic of American households.

The U.S. economy slowed during the last two quarters of 2008, yet the overall economy still grew by 1.3 percent for the year. In the last month, a proactive new administration took office with a powerful and capable economic brain trust on a mission to steer us into calmer economic seas. Across the nation, a sense of hope builds with the expectation that the new administration will push through Congress a massive stimulus plan centered on job creation, tax credits, and improvements in infrastructure. And most importantly, the government is working aggressively with housing and banking institutions to tackle the growing issue of foreclosures, thus assisting struggling home owners.

Declining inflation and falling energy prices continue to provide some relief to consumers, increasing disposable income. On the housing front, mortgage rates now stand at 5.05 percent, nearly the lowest point in 50 years. These unprecedented low rates are continuing to offer refinancing relief for many homeowners and an opportunity for home ownership for those who might have been locked out previously. Housing affordability now stands at a level not seen since the 1970s.
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