What a difference a year makes in Western New York Real Estate!
What a Difference a year makes
Last year at this time we had just weathered the Bear Stearns and Lehman Brothers failure and much uncertainty was in front of us. We then had the takeover of Freddie Mac and Fannie Mae by our government. Now the crisis of the big 3 Chrysler, Ford and GM (Government Motors) still uncertainty is in front of us. Or is it?
Economic cycles are exactly that, cycles.
There are peaks of economic prosperity and troughs of slowdowns in the economy. Our slowdown, while severe, is done, in my opinion. Whether you agree or not with all the government bailouts and control they are exerting it is one of the most aggressive efforts ever by our government to stimulate the economy. Will it work? There are already signs of that happening.
The homebuyer tax credit of $8000 has re-energized the housing market and the word is only starting to get out. Interest rates are at the lowest levels in the past 40 years. I had to look twice at a rate I just locked someone in on a 30 year mortgage, I couldn’t believe it was that low! Real Estate offices across the state are seeing increased activity.
Sure unemployment levels will increase and it’s unfortunate so many people have to lose their jobs. That’s what happens in an economic downturn. Consumer confidence will start to slowly increase and that will cause people to get out and make decisions on purchasing big ticket items, cars, homes, appliances etc. The stock market will improve growth will be back in our headlines. Economists are already talking about when we will be out of the recession.
The past year has brought us back to reality, back to family, back to old school values and owning a home is still the American dream.
Guest Author:
Kenneth A. Wojnowski, Sr.
1st Priority Mortgage, Inc.
Regional Sales Manager
Office: (716) 651-5626 Ext. 240* Fax: (716) 651-5640
Email: Kwojnowski@1stPriorityMortgage.com
