Are you going to get left behind?
In many of my previous blogs and newsletters, I have expressed my opinion that this market is being driven by public perception. The average person makes decisions on whether or not to get into the housing market based on what they hear or read about the economy. This is a very news driven market, and as I have stated previously, the media is creating the event and not the other way around.
If you are listening to the recent headlines, it would seem as if the economy is getting stronger by the second. Almost all of the key economic data has been positive lately. If all you do is listen to the headlines, it would sound something like this. Pending home sales surge up 10%! New hiring was much stronger than expected! New home sales were up 1.3%! The latest consumer board survey states that consumer confidence is up by 15.1%! Based on this data it would appear that we are in the middle of a very strong economic rebound.
Now add all of this extremely positive economic data to an extremely tight housing inventory and historically low interest rates and BAM! You have resurgence in the housing market going on right before your eyes!
The obvious question though is whether or not this data is accurate or not. The answer is that it doesn’t really matter. If the public perception is that the economy is getting better than there is a good chance that the economy will get better, at least in the short term. I heard a statement once, I don’t know who said it but it seems to be a truism. He said, “I don’t know what the average American is going to do; all I know is that they will all do it at the same time.” The thing to remember is that we are a service oriented economy and how the average consumer feels about the economy in general is an extremely important factor to a true economic recovery. The other key factor in any economic recovery is the housing market. If the housing market starts to show consistent strength, then the economy will follow.
The last point I want to make is that if you do the research, and don’t just believe the headlines you will see that all of this rosy economic data has some potential down sides. The point is that if you’re considering buying or selling a home in this market, you need to be aggressive and proactive.
Follow the trends; be informed, up to date, and in the know! Don’t get left behind.
If you are interested in a free, no obligation buyers consulatation or listing presentation please contact The Barasch Group