Change We Can Believe In

As I watch the inauguration of Barack Obama, I can only hope that his presidency brings back a much needed sense of confidence to the American people. It is this confidence that will help revitalize the real estate market, and eventually the economy as a whole.

In the last few weeks we have seen life in the market, mainly due to lower interest rates (4.75% fixed 30 year rate). This has caused a refi boom for mortgage companies and title companies alike. This has also spurred first time home buyers to act and take advantage of the lowest fixed rates in 40 years, Housing is a ladder and by stimulating the first leg of the housing ladder you spur the residential market and cause a recovery to begin. Jobs are also a very important element of a recovery. Stabilization of the employment market is key. But residential housing and its tentacles (mortgage companies, title companies, furniture stores,moving companies, contractors, plumbers, carpenters, etc) comprise 40 percent of our economy. When residential real estate recovers so will the economy. The process will take 12 to 18 months but today we are declaring the bottom of the residential market!

Good luck President Obama.