The Consumer is Buying Houses!

    Even with all the negative news in the marketplace, the consumer is forging ahead to purchase housing.  This is great news!  In Maslow’s hierarchy of needs, the top three needs are food, clothing and shelter.  No matter what the conditions are in the world, people still need a place to call home.  America is the best location in the world for housing.  Our poor live in better housing than the middle class of other nations.  No matter what occurs in the future, people will need shelter and America provides some of the best shelter in the world.  Americans have grown accustomed to the quality and quantity of good affordable housing. If we wish to serve the public and provide a quality service the customer will want to do business with us.  Now more than ever, we need to broaden our level of knowledge in the proper use of the Realty Executives system and tools.  As the customer becomes more and more selective in their decision making process, we want to be right at the top of their list of professionals with whom they do business.  By expanding the familiarity and use of the Realty Executives brand, as we have the opportunity to share our story. Our story should be the strongest in the market place!

There is optimism in the air:

• The buyers are returning
• New construction is up slightly by offering incentives
• Laid off workers and new hires are about even
• Housing inventory as it relates to months of inventory on the market, continues to narrow
• Housing interest rates will remain flat for the foreseeable future
• Condominiums continue to rebound and are affordable
• GDP growth is still forecasted to be between 2.5 to 3% for 2010
• Corporate inventory is replenishing, future inventories replacement will be gradual
• Greece and Spain’s downgrading has not had an impact on U.S. companies
• As $8000 tax incentive expires, sellers are asked to offer incentives
• Frugal spending behavior is beginning to soften
• Stock markets will move up and down in the near term; however, long term, the market will continue upwards and has been trading in the 11,000 range for the past 30 days
• The value of the dollar may have reached its floor and will begin to strengthen

• The Fed Chairman held interest rates at their current rate
• Inflation is still flat, but expect some movement upward later in the year
• Banks profits continue to improve
• Jumbo finance rate have softened considerably
• Appraisals have become more realistic
• Cost of a barrel of oil is creeping up, but is still in the normal range and supply is still greater than demand
• Unit number of housing sales continue to grow, sales prices are lower
• Unit number of foreclosures will continue to increase short term; a decrease will lag behind improved employment numbers
• People are relocating to areas where hiring is occurring, providing listing and sales opportunities

   The public is optimistic that Congress will be able to get control of the government spending that is still occurring after the November elections.  This optimism helps consumer confidence improve, allowing spending to grow at a modest rate.   The economy continues to grow slowly, increasing home sale opportunities.  It is wonderful that you are positioned to help those consumers that are returning to the market.  The Southern Region wishes the best for everyone during 2010!