If you are like most people, just watching the news lately is stressful. The unemployement rate seems to be climbing and seems to be exacerbating the already bad housing market. A dangerous cycle seems to be going on in rising unemployment rates, rising foreclosures, and falling home prices.
I bought my first home back in the Spring of 2004 and I see some of the houses I looked at for sale now for less than the 2004 asking prices. Several of these homes have had substantial renovations done and look fantastic. I keep wondering did the bottom fall out already or is the worse still to come?
Business Week published a Housing Report (June 2009) which states that the housing market may not recover until 2012. This article states how the U.S. National Home Price Index will fall about 16% this year before regaining ground. The Gross Domestic Product is expected to shrink this year by 3%, grow 1.4% next year, and increase 4.7% in 2011 and finally reach an increase of 5.8% in 2012.
So, it looks like the end is somewhat near. This may be a good time for those first-time home buyer's (with excellent credit) to go out and buy their first home. Hopefully, some of the Obama Stimulus money will help create those much needed jobs for everyone who is out and work and we will see an increase in local job growth.
I am glad to know that the forecast for next year should be brighter as the gross domestic product (our ecomony's economic performance measurement tool) starts to rebound. Hopefully, the housing market will not be too far behind. I think we are all ready for a positive turn, so hang in there everybody - we have almost made it out of the storm!
