As 2008 comes to a close and stocks mark their worst year ever, 2009 will be the start of a very slow and painstaking recovery.
If this is the worst that can be thrown at us, we will take it!!
Every day, we encounter people, at the bank, who are struggling: hours cut, 401ks down,
savings lower, debts higher. But, when you start asking the questions, you realize that they made it. They made it through 2008 with their family in tact, their health in check, and food in their cupboards. We all made it.
Now, where are we heading?
2009 should be better, but stocks won’t rise in a straight line to recovery. But, by the end of 2009, most analysts expect anywhere from a 10-25% improvement in the S & P.
At some point in 2009, the tailwinds of lower gasoline, fiscal stimulus, housing stabilization, and auto sales recovery should generate a sustainable rally. This is a very big “should”. We have not witnessed an economy quite like this before.
What does this all mean? It means that the rates should stay low for a little while longer. We shouldn’t expect the prime or the mortgage rates to increase in the near future.
Also, housing prices should stay lower for awhile- at least for the first half of 2009.
This is the time to think about buying a new home or refinancing your existing home loan. It is time to look at your housing situation and make some big decisions. The first half of 2009 just may be the last opportunity.
Housing prices are down. Interest rates are down. Inventories are up. If you are sitting on the fence, now is the time to make your move.
Some of our first time homebuyers are having the best year ever!! They are buying homes with instant equity and cashing in on these historic rates.
Once the economy starts recovering, the marketplace will change, and the opportunities out there will be lost. A few years from now, we will fondly look at this economy and wish we ‘would have’.
Have a wonderful and prosperous 2009!
www.LaBeauandAssociates.com
www.ratzlaffhomes.com
Wells Fargo
Ryan Berg & Betsy Kozulla
Wednesday, January 7, 2009
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