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September 3rd, 2006 at 1:50 pm
Oh wise and powerful Bo, I keep hearing all this doomsday info that the economy is suffering and market trends are pointing to a sad, sad real estate situation that’s going to last for years and years. I keep hearing that the economy is just fine and that we’ll be going on the up and up soon enough.
What sayeth thou?
September 5th, 2006 at 5:01 am
Sadie, economic prognostication is not my strong suit. I do know this… traditional economic cycles that occurred before and during the first half of my life, no longer seem to apply. Since the early 90s, we have seen steady growth with little inflation at or about full employment (5% unemployment is considered full employment).
Right now there is a surplus of new homes, putting pressure on all home buying, which means it’s a buyer’s market. However, this does not seem to have too big an effect on other economic factors and there is a good supply of first-time home buyers out there, who are just about ready to pull the trigger. I don’t think this is a long term situation… probably like ’96 here in California and will turn back up within a year or two. We’ll see how I did when we get there (2007/8).
Concerned?
September 7th, 2006 at 12:40 pm
Thanks for that sage advice. I agree–this might last for a little while but nothing even close to panic about quite yet.