All around my town I hear people talking about how we have hit the bottom of this downward economic cycle. We, they say, are on the uphill track now. Really?
I like to be optimistic as much as the next guy, however, have you seen how unemployment is up, there are no new job opportunities being offered, immigration is down, the U.S. budget deficit for this year is up by $89 billion, coming in at $1.84 trillion overall -- a massive 12.9 percent of gross domestic product.
Our government is citing the recession, corporate bailouts, and higher costs for social safety-net programs like unemployment insurance. Surprise, Surprise, Surprise!
Spending on government rescues for the financial and automobile industries was also a factor in the higher deficit, said a White House official.
To be considered to be in a upward economic cycle you need to see investor returning to the market and real estate sales to increase. To some it may look like prices are increasing, they’re not.
Fannie Mae moratorium on foreclosures is being lifted this month and you will see more foreclosure coming onto the market. This translates to lower selling prices causing lower fair market prices of most homes.
We haven’t hit the bottom we have just bounced off a resistant level that I think will only be short lived. It’s sad, and one thing that is a good thing to know…this too shall pass. We are all going to be ok. Just not with this short burst.
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