Since the bear market began in March 2000, U.S. households have had almost $6 trillion in wealth lopped off. That’s obviously not good from any standpoint, but the exodus of investors from the bear market in stocks does have at least one positive effect: continuing strong real estate activity.
Millions of households are looking to real estate not as an investment but as a place to live, and that, in turn, is making real estate a safe haven for their funds. The housing sector remains a pillar of strength for a struggling U.S. economy.
After the terrible events of Sept. 11, many forecasters expected the recession to do serious harm to the U.S. economy. But their predictions couldn’t have been further from the truth. This recession was short, shallow, and nameless.
The industry is now operating in an environment scarred by the events of Sept. 11 and weakened by the slowing economy, so home sales will certainly ease. The pace of business innovation may also slow. But the outlook for sales remains remarkably upbeat.
After the tragic events of Sept. 11, it has become increasingly clear that the United States is entering an era dominated by a new set of priorities. A prolonged war against terrorism may change our way of life, both politically and economically.
Residential sales, after years of soaring, finally started coming down in the second half of this year--nudged in major part by the September 11 terrorist attacks. But don't expect that slowdown to last long.
To its credit, the Federal Reserve Board “just did it,” lowering the federal funds rate by a half percentage point to 4 percent. It was a stellar shot that won the applause of both Wall Street and Main Street the Fed’s chair ignored the inflation mongers who, like Chicken Little, warned that the sky was falling.
Real estate generated top returns for investors in 2000, and 2001 is shaping up to be another good year, despite the slowing economy. That promises to keep investment opportunities hot for savvy market watchers, paving the way for strong sales as practitioners make hay while the sun shines.
The Bush administration promises to drive change through the economic landscape by shuffling our nation’s fiscal priorities toward a more conservative agenda than that of the Clinton administration. Is that the right course for keeping the economy pointed in a healthy direction?
Economists are starting to utter that r word again, but whether it stands for recession or resurgence depends on the day of the week and the position of the stars. One thing that’s certain, though, is the healthy position of real estate to weather whatever the economy whips up, analysts say.
The dizzying ascent in world oil prices threatens to turn the good times into bad for the U.S. economy--and our housing markets could get caught in the middle as policy bodies attempt to keep the oil situation in check.
Today’s information economy has the real estate world by its not-so-gentle hands. But unlike others in the industry, real estate practitioners are in a position to master the new flow of information. What are the challenges ahead?
Practitioners must complete the transformation from information providers to knowledge providers they began when the Internet arrived. Otherwise, they’ll be competing with the Internet rather than capitalizing on it, David Lereah told REALTOR® Magazine in a recent interview.
When it comes to the “new economy,” there’s really less that’s new than the media hype suggests. That’s certainly the case with the real estate industry, which has been as quick as any industry to capture what’s best in the brave new world of the dot-coms without losing sight of the “old economy” infrastructure that can’t be replaced.
With interest rates rising and other key indicators such as gas prices moving upward, you’d think the residential real estate market would be due for a rough ride in the year ahead. But pieces remain in place to keep sales going at a relatively robust clip.
Thanks to the economy, advances in credit scoring, and the Community Reinvestment Act, the rate of homebuying by low- and moderate-income households is shattering the record books. But with economists talking about an eventual slowdown in growth, there’s concern that some of these new homeowners may be in over their heads.
The latest Census Bureau data helps put into focus all the disparate facts and figures we read about on the housing market. Here are a few especially informative figures from the third quarter of 1999.
The stock market today has swollen to $14 trillion dollars, double what it was five years ago. With the market at this height, analysts aren’t ruling out a "correction"--a major drop in the value of the stock market. So would real estate be hurt if the stock market were to take a nosedive?
From Nov. 30 to Dec. 3, delegates from the 134 member countries of the World Trade Organization will be meeting in Seattle to launch the “Millennium Round” of trade talks. Although many REALTORS® may not realize it, the stakes are high for real estate.