There’s an eerie cloud hanging over the global markets. Much of the concern comes from global news that reeks of an economic slowdown or worse. Generally, I have an optimistic outlook, but something is just not sitting right. The view comes from a general outlook of the economy. I am no economist, just a citizen with views. Aside, from all the things going on globally, there are items on the home front that should be addressed.
Unemployment: is said to be around 8.9%, which we all know is more like 12-15%. This people are spending less not adding to the overall growth of the economy. Not to mention, they are less likely to purchase a home.
Housing: There is a surplus of inventory on the market. We recently, reported median home sales are down again. Owning a home has lost its mystique. The once great return of your investment is no longer. Why would you want to own a overpriced home? Prices are still priced too high due to the over inflated real estate bubble. Not to mention taxes (you know what I mean if you live in New Jersey). We will continue to see price declines over the next 2-5 years if we are unable to bring down inventory.
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