Almost a decade ago the first salvos of the subprime mortgage crisis were
being felt. We know now that what started in our real estate sector spread not
only to our entire economy, but to great swaths of the world as well. It was as
if we pulled the world into recession. As the world's largest economy, it is not
surprising that as we sunk, we took much of the world with us.
Now that our economy is recovering, the world is still languishing in many
areas. The question is -- can we now lift the world out of recession? We think
that it is logical that this could happen. However, there is one factor which
must be in place -- our real estate market must be clearly recovered. The real
estate markets led us into recession, and now they must lead us to
prosperity.
This is why the monthly real estate data being released is so important. Last
week we had existing and new home sales data released and the results were
mixed, but the more important existing home sales figure was positive. This
represents a decent start to the spring selling season. We are not saying that
the jobs report next week will not be watched closely. The jobs numbers are
very, very important. But employment will not keep improving without help from
the real estate sector. The Federal Reserve Board is meeting as we release this
newsletter and you can be sure the real estate sector will be on their mind as
they prognosticate about the next employment report to be released next
week.
Mike Ervin
Branch Manager/Mortgage Banker
NMLS: 282715
O: 650.735.5261
C: 650.766.8500
No comments:
Post a Comment