As I mentioned in my blog of yesterday, "What is the state of the Boxers and Briefs in your home? Spring sales indicators ... ", I found an article on Kiplinger.com that addressed the question that is on most real estate professional's minds ... 
"What is the financial outlook for this Spring?"
According to the Kiplinger.com article mentioned, "10 Signs the Economy is on the Upswing", there are 10 everyday life-indicators suggesting that our economy is improving. I made some folly within my post of the #1 indicator speaking of boxers and briefs ... but truly, most of the indicators mentioned made sense when analyzed.
A comment I received regarding my post from SarahGray Lamm, Alan Tate Realtors, Chapel Hill, NC, suggested that this article was correct. The public's personal perception of indicators is perhaps the most reliable measure of how our economy is presently doing or where it's heading. The public is afterall, the frontline of the economy.
And SarahGray Lamm is right. Even though many economists speak of the current recession having actually turned the corner in fall of 2009 ... most Americans said "it ain't so!" Today's statistics, measured and reported by The Conference Board (conducted by the Nielsen Company), indicate that consumer confidence is again on the rise. I believe that they are right, as I am personally hearing comments in that vein and business calls I receive certainly reflect that as well.
This Spring's real estate market will most definitely be more sensitive than in the past due to the personal indicators talked about in the Kiplinger.com article. But there are other very large reasons that will most likely factor into making Spring 2011 atypical for real estate professionals and the public alike. They are, IMO:
- Major changes in the Financial Industry, effective April 1st (and that's no fooling!) Higher rates, higher lending costs, tightening of standards, etc., are all going to contribute to the effects seen.
- Interest Rates will most likely move firmly into the 5% - 6% range.
- Another wave of foreclosures is said to be lurking and predicted to hit the market sometime this Spring. That means more housing inventory to move through.
Although none of the above sounds optimistic, public sentiment and the statistics measuring them are proving to make an opposite case. "Hits" to Trulia.com saw an increase of 40% in January 2011 page visits over the same time as one year previously. Other similar websites are reporting much the same. I am seeing the same results on my own personal website.
An active interest in home buying seems to be re-emerging. There may be pockets of areas that may see further dips in home prices, but the pendulum seems to have already steadied or started to upswing in many major areas.
Now is the time for Realtors, as well as Lenders, to send an united message to the public that buyers can't afford to wait any longer. It's most likely to be a losing gamble if they do. (See my post "Reality Home Buying ... The Numbers Don't Lie. Buying NOW vs Later".
Spring is just around the corner. The mood and optimism of Americans is hopefully warming along with the temperatures. In the meantime, those thinking of becoming buyers and sellers need to prepare themselves for their possible entrance into the home market.
Real estate professionals should and can help them accomplish this preparation during these weeks leading up to Spring. Education and preparation is key to buying and selling success .. buyers, sellers, ... and ours.
Gene Mundt, Sr. Vice President
Personal NMLS #216987
The Federal Savings Bank
1823 Centre Point Circle, Naperville, IL 60563
Now on Skype! 630-219-1316
