As one of our former presidents was fond of saying: "Well, here we go again." Reports that home prices and numbers of home sales are falling will come as no surprise to those still hanging on and trying to figure out where their next mortgage payment is coming from. These are tough times for everyone but they're particularly tough on those who have staked their lives on the American Dream.
The news today shows that sales of new homes fell 1.8 percent in February. That's another blow to a fragile market that experienced a 1.6 percent decline in January. How much further can this go? Well, there is an end in sight according to a report released this week from the National Association of Realtors. They've predicted a continued slide for the next month or two, then a leveling off by summer. They believe home sales and prices will actually start to rise again in the third quarter. While that's small comfort to those about to get the ugly foreclosure papers in the mail from their banks, it does provide a small glimmer of hope that the nation's economy may be turning around. That means we may actually avoid the much-feared, ugly monster called a recession.
While the economy may be turning around, inflation is still dealing nasty surprises all over the family budget. Gas is hovering at all-time highs which makes everything else that must be trucked in from somewhere else more expensive. Bread, eggs, milk, fresh produce, etc. are all taking a bite out of already tight circumstances.
All I can say is that we must hang in there and fight the good fight. We must continue to make better decisions about money and try to avoid the most expensive loans. If you find yourself in a bad predictament due to an ARM about to re-adjust or bills that just won't go away, please contact us and we'll try to help. We can buy your house, all cash, very quickly. Visit our Web site, for more details.
