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Reasons for the slow start of 2008 home sales

An interesting thing happened in the housing market when interest rates fell below the 6% for the second time since the 1960s, sales declined. With most lenders offering 30 year loans at 5.7%, and 15 year loans in 5% to expect potential buyers to foot the market, like parents after Hannah Montana tickets. You may be wrong.

Sales homes pending closing year to date through three weeks of work were at the lowest level since 2001, compared to 207 in 2007 to 126 in 2008, a decrease 39%. Three weeks does not a trend, however, can make taking notes.

The inventory of homes for sale continues at record levels for this time year, listing more than 1650 home, and the listings will come to market with the sales pace for more than two to one.

What could cause a slow start in this market stable central Illinois housing? It may be simply a return to seasonal market activity with home buyers waiting until spring. Maybe you could be satisfied demand following strong sales during a time of flat job growth. It could saturate the media the news with talk of recession, causing buyers to take a wait and see.

The media are dear to her again. After a successful campaign to create a negative psychology in the housing market, media banana after all this time, the economy. The mainstream media has failed to provide sufficient concern that the president came out this week with a $ 148000000000 economic stimulus proposal for keep the country from "falling into recession."

The key point is that the country is in recession, but everyone believes that there is a recession because of the media. Perception is reality. Could be the cause of the slow sale of homes in one of the nations markets more stable housing, Springfield, Illinois?

Another reason for the slowdown could be the rising cost of energy and food have caused a retreat in consumer spending. You can not have a recession unless there are two consecutive quarters of negative growth, we have not had one. The only way that would negative growth would be a significant drop in consumer spending. We might be seeing that the withdrawal of the expenses of the families pay price unreasonable to go to work, take kids to school, buy food and pay their utility bills.

In my opinion, the day of reckoning end is near, because of the lack of a meaningful energy policy that would reduce our dependence on foreign oil. The energy bill approved in 2007 to great fanfare, is its political aspect "typical of what we've done for you" the law meaningless. It does nothing to reduce our dependence foreign oil, unless you believe that mileage standards years from now will have an impact. History shows previous mileage standards have been the opposite effect. The 2007 energy bill is a toothless tiger.

Until politicians fail to bow before the altar of political correctness ecologists, who will never escape our dependence on foreign oil. An example would be when the city of Springfield wanted to start building a new power plant. Just the threat of a lawsuit by a group of some 400 members of the environment, a city of over 115,000 was held hostage until that the city paid the ransom of emission standards increasing beyond those required by law, and agreed to buy wind power to supplement electricity production in the city. The cost to taxpayers so far is estimated at $ 1.6 million and counting. The same is happening at the federal level.

In the 1990 Clinton vetoed legislation allowing drilling in Alaska, which would be delivering more than one million barrels of oil in our market today. Instead pay dearly for foreign oil. The outputs of the technology for environmentally safe drilling our reserves oil, on the coast and the coast. Castro can do it, but we can not? To add insult to injury has not been a refinery built for over three decades, leads us to import 13% of our gasoline. With domestic oil deposits in Rocky Mountain States is estimated to exceed those of Saudi Arabia, which is the economic sanity. How much does Saudi Arabia import sand from us?

The reason our economy is in danger of falling into recession is our fault for not elect candidates who support real energy independence. Do not complain when you fill the gas tank, check out the grocery, or waiting months to sell your home if you can sell at all. The rising cost of energy is the reduction in income is your fault. Perhaps the politically correct environmental of the last two decades, our society will be more expensive than expected. To allow environmentalists to stop our progress, the economy and security a time when the technology exists to securely capture our own energy resources is irresponsible. The reward, energy independence, it is worth risk, slight impact on our environment. That's the inconvenient truth.

Time will tell if the slow start in home sales at a time when interest rates historically low, is a return to normal seasonal activity, or a tendency for home sellers regret.

About the Author

Fritz Pfister is a licensed Realtor with RE/MAX Professionals Springfield Illinois.
Fritz is a leader in the local real estate market and hosts a live one hour radio program, now in its' 13th year.
Fritz's website is
SpringfieldHome.com
Fritz hosts home buyer and home seller seminars that have been attended by hundreds of consumers.
Fritz provides advice that helps consumers succeed in the sale or purchase of homes.

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