How is 2010 shaping up?

    There are a number of events that occurred recently that show our nation and our industry is showing improvement.  Americans are more attuned to what is occurring around them locally, regionally and nationally.  They are discovering that they are not alone in their concerns for their wellbeing and the forces that are impacting their lives.  People are making local decisions that have national impact. This has resulted in a newfound positive energy that is swelling up inside folks just like you and me.  For example, the miracle in Massachusetts, Ford motor company turning an annual profit for the first time since 2005, and resurgence in positive trending in consumer confidence all contribute to the cautiously positive attitude that Americans are beginning to exhibit.  People are finding that these new individuals who are being raised up to represent us appear to have good common sense.  As individual Americans voice their opinions, they realize they are being heard loud and clear by other mainstream Americans.  Hopefully these Americans will make a positive difference in our future and our business will show positive improvement long term.

The Economy:  I am encouraged about the future of real estate and I hope you are too!  All of the indicators point to an improving market.  Below are some examples of the optimism in the air:

• The spread between layoff and new job creation is beginning narrow
• South Florida has stabilized and property values are rising
• Orlando and Tampa areas’ single family housing is stable and rising in price
• Housing inventory as it relates to months of inventory on the market, is narrowing
• The Federal Reserve did not raise interest rates and will hold them at current levels for the near future
• The condo market continues to soften slightly in price; however, it has almost reached the bottom in pricing and purchases of condominiums are increasing
• Corporate profits continue to improved and fourth quarter profits for 2009 are anticipated to be huge
• Credit is still tight
• Corporate America will begin hiring in the future but gradually.  Full employment is not forecasted until 2016
• GDP growth will be between 2.5 to 3% for 2010, fourth quarter report will be adjusted downward
• Corporate inventory is replenishing, future inventories replacement will be gradual
• Teenage unemployment continues to remain high
• College graduates are working hard to become employed and when they find employment they are in most cases disciplining themselves to stay employed
• Consumers are embracing frugal spending behavior
• Stock markets will move up and down in the near term; however, long term the market will continue upwards to be above 11,000 during 2010
• Most economists are no longer forecasting a double dip recession

• The value of the dollar may have reached its floor and will begin to strengthen
• Inflation is still flat, but expect some movement upward later in the year
• Banks profits continue to improve
• Jumbo finance rate has softened considerably
• Appraisals are becoming more realistic
• Cost of a barrel of oil is still in the normal range and supply is still greater than demand
• Unit number of housing sales continue to grow
• Unit number of foreclosures will continue to increase; a decrease will lag behind improved employment numbers
• People are relocating to areas where hiring is occurring providing opportunities

   The public is returning to the marketplace for housing.  As our economy improves, consumers will increase home sale opportunities.  It is great to be positioned to help those consumers that are returning to the market.  The Southern Region wishes the best for everyone during 2010.