Hello,
I found a great article that I want to share with my business partners. This is a prediction of what 2009 will look like.
The Economy will have a tough go once again during the coming year. But we do see things as being better than during 2008, with more optimism in the air.
The Fed and the Treasury have and will continue to add lots of stimulus to our economy. It will just take time for the "medicine" to work its way through the system. After hogging the spotlight with many different moves, we expect the Fed to be on hold with their interest rate policy throughout the majority of 2009. After all, there's no room to cut further, and we don't see a hike until economic conditions show signs of improvement. When a hike comes, we may all take it as a welcome sign that things are getting better.
The job market will get worse before it gets better, and don't be surprised to see the unemployment rate rise to 8% from its present level before things start to improve.
We can safely predict, without much disagreement from anybody, that volatility will continue for Stocks. But we do see hints that there will be a significant first quarter rally. By the end of 2009, we forecast the Stock prices will see some handsome gains. This play on financials has a generous dividend yield and stands to improve greatly should financials start to recover.....and we think they will.
On housing, we see 2009 as a period of price stabilization for most markets. One good gauge that home prices are stabilizing in your area is to figure a monthly payment with 20% down and compare that to rents for the same property. If it would actually be cheaper to purchase the home than to rent it - that's a good sign
Home prices in some markets may still decline some during 2009, but those who make savvy purchases below market value should fare quite well, especially longer term. There's a lot of inventory on the market, which is viewed negatively, and needs to be sopped up before the housing market really turns. But.... the inventory in the housing market does make this a fantastic time to be a buyer. Homebuyers will have a strong negotiating stance from the get-go, and are likely to make favorable deals, maybe even a once-in-lifetime deal. Those who buy a home and live in it for the long term are likely to be rewarded handsomely. Let's face it, people need homes. They are not going to start living in tents just because the economy is bad. We predict that consumers will start buying again in the coming year, particularly with attractive home loan rates and many homes to choose from.
Hope you found some interest in the above article. If I can help you and your clients, please do not hesitate to give me a call.
Teena Arnold Mortgage Loan Officer
I found a great article that I want to share with my business partners. This is a prediction of what 2009 will look like.
The Economy will have a tough go once again during the coming year. But we do see things as being better than during 2008, with more optimism in the air.
The Fed and the Treasury have and will continue to add lots of stimulus to our economy. It will just take time for the "medicine" to work its way through the system. After hogging the spotlight with many different moves, we expect the Fed to be on hold with their interest rate policy throughout the majority of 2009. After all, there's no room to cut further, and we don't see a hike until economic conditions show signs of improvement. When a hike comes, we may all take it as a welcome sign that things are getting better.
The job market will get worse before it gets better, and don't be surprised to see the unemployment rate rise to 8% from its present level before things start to improve.
We can safely predict, without much disagreement from anybody, that volatility will continue for Stocks. But we do see hints that there will be a significant first quarter rally. By the end of 2009, we forecast the Stock prices will see some handsome gains. This play on financials has a generous dividend yield and stands to improve greatly should financials start to recover.....and we think they will.
On housing, we see 2009 as a period of price stabilization for most markets. One good gauge that home prices are stabilizing in your area is to figure a monthly payment with 20% down and compare that to rents for the same property. If it would actually be cheaper to purchase the home than to rent it - that's a good sign
Home prices in some markets may still decline some during 2009, but those who make savvy purchases below market value should fare quite well, especially longer term. There's a lot of inventory on the market, which is viewed negatively, and needs to be sopped up before the housing market really turns. But.... the inventory in the housing market does make this a fantastic time to be a buyer. Homebuyers will have a strong negotiating stance from the get-go, and are likely to make favorable deals, maybe even a once-in-lifetime deal. Those who buy a home and live in it for the long term are likely to be rewarded handsomely. Let's face it, people need homes. They are not going to start living in tents just because the economy is bad. We predict that consumers will start buying again in the coming year, particularly with attractive home loan rates and many homes to choose from.
Hope you found some interest in the above article. If I can help you and your clients, please do not hesitate to give me a call.
Teena Arnold Mortgage Loan Officer
Work: 918-496-2241
Cell: 918-637-2610
Fax: 918-494-6771
918-260-9932
KenSellsHomes
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