It's Up; It's Down; It's Sideways; It's....Whatever You Make of It!
The headline says it all, and yet leaves a hidden message for anyone prepared to read between the lines. The housing market is finally improving in terms of numbers sold and prices. But then, just as you begin to get excited, it takes a drop! So what's really going on? Well, in the opinion of this observer, the fact that we are having a few weeks of up followed by one or two of down is actually a good sign. It shows that there is some pent up demand for housing, and that folks are starting to act ion their desires--but with varying degrees of caution! Rates are remaining low, even with the occasional jump of a basis point or two in rates, and are still under 5% for fixed conventional 30 year loans. This helps sales. Jobs seem to be getting a hold finally, however slowly, and the stock market is climbing. Is this a major breakout? Well, that's probably unlikely for at least the first 6-9 months of this year. But there are definitely signs in the air that maybe, just maybe we've turned a very important corner.
See you next week!