Housing One of Many Problems for New Administration
I feel kinda bad for President-Elect Barack Obama. Seriously, who would want the daunting job he is now facing? In my own little bubble, I only worry about housing - what’s in store for the real estate market in 2009? 2010? Can I continue to make a living as a residential specialist? Will my clients be able to hold onto their jobs so they can make the payments on the house I find for them? What about my own house? It needs some repair work, but with the pay I’ve made lately I’m doing good to keep up with just my mortgage payment, much less fix the gutters and put on vinyl soffits.
You can see all the worry I’m facing and these concerns are just a fraction of my own big picture. That said, I can’t imagine taking on the problems of the whole nation under the microscope of the world.
So before I overwhelm myself with *everything* this new Administration will be dealing with, I’m refocusing back on the housing market for 2009. Money Magazine Senior Writer Stephen Gandel wrote a great article where he predicted housing will continue to be slow in ‘09:
Then look at the fact that 18.6 million homes in this country are now sitting vacant, more than at any other time since the Census Bureau began tracking that figure in the 1960s. And that 2.8% of U.S. mortgage loans are now at least three months in arrears, up from 1.4% a year ago. That rate is projected to peak in early 2009.
But if a recession lasts for three-quarters of the year, as some economists are predicting, the number of foreclosures could remain high longer. Add it all up and you have another lousy year for real estate.
However, Mr. Gandel went on to say that if prices drop low enough the housing market wildcard could be investors buying up the excess inventory because they’ll be able to rent for more than their monthly payment. Right now investors should be considering real estate as a staple of their financial portfolio.
Further while these times are exceedingly difficult for all of us, the difference between this week and last week is that the person who was elected to serve as President brings something many haven’t felt in a long time… personal responsibility. I believe - and this is not necessarily the opinion of banks.com - that Barack Obama can inspire people to find ways to save money, to spend wisely, to get their financial houses in order. And when this type of personal responsibility spreads, we’ll see the economy opening back up, the housing market blossoming, and the stock market recovering.
Photo by BohPhoto courtesy of Flickr Creative Commons.
