A good deal of how quickly the economy will recover is based on human emotions. For example, when someone is confident that their personal situation is improving, they’re much more likely to spend more, and the spending in turn, increases the demand for goods and services. Likewise, business decisions are also based on human emotion. If business owners and corporate executives are confident that things are improving, they are also likely to stimulate demand by investing in growth and hiring more people. Most of these actions, in turn, generate additional demand and a cycle of perpetual improvement begins.
The greatest enemy of consumer confidence, and more specifically economic recovery, is uncertainty. Uncertainty causes paralysis. If you’re not sure what’s going to happen, just don’t do anything until you have an answer. For the past year, the recent election and strong polarity by both parties, has caused great paralysis and have also magnified the uncertainty of other major issues that consumers and business professionals alike presently face. There is great news, the election is over! Now most people, especially buyers, can feel much more comfortable getting on with their personal lives. Buyers that have been hesitant to purchase should pull the trigger now. Serious considerations should be given to the following points:
- The election is over and things have to improve
- The improving housing market, which includes both construction and existing homes sales, is the bellwether for an improving economy. We said it before, and we’ll say it again. The economy will not improve until the real estate market improves!
- And guess what? The real estate market has begun its great recovery . You heard it here first.
- Buyers are tired of waiting
- Retirees are tired of putting retirement on hold
- Young are tired of living at home
- Prices have dropped dramatically
- Interest rates are at historic lows
- Housing is now more affordable than ever
In other words, the great economic recovery of 2013 has begun. Every buyer must look at the increasing prices of real estate and recognize that prices that have already begun to increase and waiting to purchase will do nothing more than put more money into the sellers pocket. All this being said, buyers are still in a good position because the headline about the great real estate recovery are lagging indicators and have not been written yet.
You heard it here first. Don’t wait until the headlines start popping up and everyone else starts hearing about the recovery everywhere else. Your selection and the price you pay are at risk. Don’t hesitate!