The Fed meeting currently in progress is not likely to
bring a change to current rates that were lowered in recent
months according to most financial analysts. The pertinent
question on everyone’s mind is how the US economy can
be strengthened without triggering inflation. Unfortunately,
speculation is driving up the costs of fossil fuels and
this is filtering through our, already weak, economy, pushing
up prices of goods as well as prices at the pump.
Karl Case, an economics professor at Wellesley College,
and cofounder of the S&P/Case-Shiller index said in an interview
on Bloomberg Television that there may be “some
surprises in the next few months that would indicate we
are at or near a bottom in probably one third to one half
of the country,”. This makes sense given our recent local
housing data. Data Quick reported that May Marin median
square foot prices increased in 10 Marin zip codes, while
they fell in 6 zip codes. When one considers the severity of
current US economic woes, Marin’s strong increases highlight
the relative strength of our local market, and seem
to indicate that the bottom may have been reached here.
The positive side to this is that once the bottom has been
reached the only place to go is up!
Congress is currently debating a second economic stimulus
package that goes beyond the one already in place.
This new package specifically targets increasing unemployment
benefits and creating a vehicle for local governments
to buy foreclosed properties in areas where a glut
of such properties is creating a drag on local tax income in
an effort to keep town budgets in the black.
What does this mean for you? Since it seems that many
potential buyers have been waiting for the bottom to be
reached before making offers, you might be able to move
them forward with strong data in hand. The same data
could help sellers to become more realistic in their pricing,
enabling you to gain sales. With rates still excellent, and
some niche loan products returning to the market, there
are many good reasons to buy right now. If you have clients
who need creative solutions to their financing needs
they are in luck! Some lenders are adding stated income
loans back to their product lines, and there are still some
great low down payment programs available.