Good New in Real Estate Means Higher Single-Digit Appreciation
By Petur Workman
Coldwell Banker - Denver Central
NBC Real Estate News Correspondent - KUSA/Denver
303.941.7555 mobile
petur@workmangroupco.com
workmangroupco.com
While we await the results of the possible expiration, extension or expansion of the $8,000 first time home buyer tax credit, one thing is for sure, the economy is moving forward in full force—which is driving consumer confidence. Earlier this week, Reuters.com ran an interesting story on the U.S. economic recovery and the result was encouraging. Among the story’s highlights:
- The U.S. economy is firmly poised for a recovery from its deep recession but growth may be moderate and the job market will not revive immediately, senior White House aide Lawrence Summers predicted on Wednesday.”
- “On the economy, Summers said the $787 billion stimulus package and inventory rebuilding by businesses were among the dominant drivers lifting the economy.”
- “It will be some time before unemployment starts to decline. Once it declines it will take a long time to return to normal levels, given how elevated it is….The jobless rate is now at a 26-year high of 9.8 percent.”
- “Most private economists think the recession, which began in December 2007, ended in the third quarter. But there is much disagreement about the path to recovery.”
- “Some see above-average growth continuing through next year, arguing that deep recessions are typically followed by powerful recoveries, helped along by pent-up demand as consumers and companies resume spending.”
Obviously this is welcome news for the economy which ultimately benefits the local housing market. What I can tell you is that I am encouraged by the progress we are making in the real estate market. We’re beginning to see more days of progress than days of back stepping. We’re watching sales activity and consumer sentiment and we are expecting over the coming months a moderate to a more sustainable pace and we will probably see a modest rise in housing prices in the coming year. Will it be the double digit appreciation we saw in the earlier part of the decade? Probably not. But this new normal (as we’re calling it) is much more sustainable and a much healthier path to build upon. It excites me about the future and gives us all hope for a relatively modest and productive 2010.
Additional articles of interest:
- What Housing Bust? CNN Money
- Housing Tax Credit Working, So Keep Momentum Going, NAR Urges Congress Realtor.org
- Shape Of The Housing Recovery, CNBC
- Real Estate Outlook: Mixed Signals;,Realty Times
