No Shift Shock
While I watch very little television there is an auto ad that has the catchy phrase “all power with no shift shock”. There is much in the news about the Fed and interest rates, the oil pipeline in Alaska, gasoline prices, surging energy costs and the ever present weather reports. All of this, and other world events, has an affect on how we feel and react with respect to the purchase of real estate.
What gets little in the way of headlines are reports like these: Freddie Mac recently reported that the 30-year fixed-rate mortgage fell last week and is just 90 basis points above the rate at this time last year. Despite higher inventories, existing home values nationwide continue to grow; the median selling price for existing single-family homes was up 4.3% from a year earlier. The National Assn. Realtors (NAR) reported that U.S. home sales are simply settling into a slower, more “normal” pace, and that’s actually healthier for the long term housing market. Pending home sales – a leading indicator for the housing sector – have risen for the last two months according to the NAR. Not real interesting compared to major events across the world.
Events around the world certainly affect us and there are bumps in the road, but overall we don’t seem to experience a real estate “shift shock”. Real estate is cyclical and hopefully we will remain on a steady course.
Have a great weekend; the forecast here is more of the same: sunny, warm and perfect lake weather!
Life is Good!
Gary A. Nathan
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