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Real Estate Update for week of May 11. 2009

Hello Real Estate Bloggers. Thanks for stopping by today.

Everyone always ask me “How’s Real Estate Marti”. The answer is real estate is very busy. Real estate is also very stressful. Real estate is stressful in good times, but in bad times the stress just keeps on coming. After all, moving your household is in the top 4 or 5 of all the top stress categories. Who makes up those lists anyway? We are right up there with divorce and loosing a job – great company, ah?

More than once this week I heard that, while things are bad, the rate at which they are getting worse is slowing down. Unemployment and manufacturing both showed their rate of decline slowing. So, while it’s still bad, the rate of “bad-er” is slower.
But if real estate will lead us out of this recession, then it appears that the ship is turning. Last week the National Association of Realtors (NAR) reported that the pending home sales index increased for the second straight month due to increased affordability created by lower prices and low mortgage rates. This is influenced by the spring buying season, but it’s still a positive. NAR also said that the median existing home price increased and that months of home inventory remained steady.

The giant ship we call the economy is beginning to turn. But like an aircraft carrier, it takes a while and momentum carries it forward before it comes about. We WILL see another drop in the stock market and ups and downs in real estate reports, but the basic fundamentals are starting to firm up.

This week rates dropped to a range between 4.625% & 5.0% depending on points and credit score.

There are two schools of thought on the economy. One says America is finished as the world super power and our economy will sink or at best take 10 years to recover. The other view, says we’ll rebound soon (and in fact already are) and have slow steady growth. If you think the “doom and gloom” folks have got it right – please don’t buy a home.

If you agree with me that America’s has not seen it’s best days yet, you might want to e-mail or call me now to buy a home or trade up to a better holding. When you hear that the buyers market we have today is disappearing, it will be too late for you to benefit from both low mortgage rates and a lower priced home.

Thanks for stopping by. You’all come back now, hear. God Bless. Mh

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