Economic Stimulus and Housing.

Economic Stimulus and Housing. by Jen Hudson, GRI

 

How will another economic stimulus package effect home sales?  According to National Association of Realtors Chief Economist Lawrence Yun, he says it is worth 7 percentage points.  Let’s explain what that really means. 

 

While I haven’t counted the numbers yet, we should finish off 2008 with somewhere around 5 million existing home sales.  According to Yun, if we see a federal stimulus package that actually provides real help to home buyers by making mortgage financing available at below-market rates, we should expect to see a 10 percent hike in sales.  That means an extra 500,000 existing homes sold… pretty significant.  Without a stimulus?  The gain should be closer to 3 percent.

 

The fact is that monthly sales are holding steady, even on a national level.  The challenge is that steady sales aren’t enough to bring down inventory levels.  To get inventories back down, something needs to happen to drive people back into the market to buy.  That’s where a stimulus would play in.

 

It’s not just a “housing problem.”  Without a turn around in home sales, the broader economy can’t hope to recover.  People complain that it is the housing and the financial sector that got us into this mess…. Well, I guarantee you it’ll be the housing market that gets us back out!

 

Let’s think restoration and stability.

 

What might we expect in 2009?  I believe that seller’s will be more realistic about their prices.  I also think that those who don’t HAVE TO sell will finally pull their homes off the market.  And, we’ll turn around shortly after.

 

It’s my honor and a privilege working for you.  Here’s to a challenging, yet very hopeful 2009!  Now, let’s go buy some of those deals before they’re gone!

Jen Hudson, GRI

Office: (360) 652-1200

Cell: (206) 293-1005

jen@jenhudsonhomes.com

Realtor with RE/MAX Signature

Want to learn more about real estate?  Visit my website at www.jenhudsonhomes.com