There are 2.18 million homes that were vacant and for sale in the 4th quarter. That's 2.8% of all homes. We are edging ever closer to a national average of 12 months supply of homes for sale this spring, with many more home owners who would like to sell simply not bothering to list their home. The good news is that if you want to buy a home, you are likely to find a very willing seller at a very good price. As long as you don't have to sell your home to move on and buy a house.
We are in a recession due to the slowing consumer spending. One caveat. The Bush/congressional plan to air drop $150 billion into the economy should add about 1% of GDP into the economy over the last half of the year, and maybe even this spring if they can get it done fast enough, and that will be a boost to consumer spending.
How many of you have to spend more money on gas and utilities so you have less to spend on consumer items.
So when the government takes the dollars that they take from you and give it back what are you going to buy?
Not much more because the cost of goods keep going up and the debt keeps getting higher. Maybe those that are having trouble will be able to put a dent into a debt collectors demands. The recession must work it's time and pain to get people to be more responsible with their money. Then the economy will start to roll because then people will have money to spend.
The recession started in August of 2007. The Feds have been lowering rates and pumping money. Six months later the economy will be at the bottom of the cycle and in March the economy will start to pick up.
The market still will struggle because it does not like inflation. But inflation is the only way the government can repay the debt with cheaper dollars. If you had a printing press wouldn't you print dollars and spend more?
That's what the politicians do with your money.
We will come out of this recession this spring but the market will stay in a sideways pattern with violent swings up and down for quite awhile.
With inflation buy the hard asset companies and gold and silver stocks on dips.