Are We Headed For A Double Dip?

Let’s first define what Double Dip Recession is – this happens when gross domestic product (GDP) growth slides back to a negative after a quarter or two of positive growth. A double-dip recession refers to a recession followed by a short-lived recovery, followed by another recession.  Contributing factors and causes include inflation, monetary easing by Federal government, weak dollar and inflation.
 
I am not an economist, so my opinion is of minor significance compared to the heavy debates we are seeing on this subject from the top economists in the country.  However, I will do my best to provide some useful information to graze over. 
 
As far as my opinion, I’m an optimist and positive thinker, so I’m of the belief that, although the potential of this exists, the powers to be will take the necessary steps to prevent it from happening.  It is a complicated subject and there are many variables.  I do believe keeping the housing market alive is key to our way out of this troubled economy and preventing this, along with improving unemployment and a host of other factors.  
 
I’m pleased that so far 2010 rates are still low.  Frankly, it’s a perfect time to purchase a home, rates AND prices are simultaneously low, something that undeniably will not continue forever.
 
A recent ABC News article states;

“We’ve been conditioned to divide economic forecasters into the “bulls,” who think the economy will boom, and the “bears,” who think it will crash. But this is a new kind of battle. Call it “Bear vs. Bear.” It’s between two kinds of worriers: One group thinks that we’re headed for an extended period of inflation, and another that believes we’re a lot more likely to have a deflationary double-dip recession.” read more
 

In the long and short, at the moment, I believe buyers are in the opportunity of a lifetime to take advantage of not only low rates, but also outstanding values on a great inventory of homes.  My advice is to buy now.
 
On that note, Freddie Mac is stepping up to the plate and providing a great venue for first-time buyers and owner occupants to avoid fighting the investors in the marketplace in my area.  This is significant, as it provides a way to keep the economy going by stimulating the housing market through providing opportunities for first-time homebuyers and owner occupants to have an edge.
 
In my area, Freddie Mac, has even setup an auction and excluded investors so first time homebuyers and owner occupants will not have to compete with the cash money and overbidding that is occurring in the marketplace.  The have picked 50 homes that qualify for Neighborhood Stabilization Program money for the morning gavel, and over 100 to be available for State and City NSP monies in the afternoon for owner occupants and first-time homebuyers.  Homebuyers can get up to 22% of their down payment taken care of, plus Freddie Mac is providing $3000 in buyers assistance, a refrigerator and a two-year home warranty.
 
Events like this are one of the things that can help keep the housing market going and are what can help us avoid double dip recessions.

Phoenix still growing, growth may help Phoenix real estate market

phoenix One reason the Phoenix valley real estate market may recover faster than most is because we live in the Phoenix area and people still want to move here. According to a recent Forbes story the Phoenix, Scottsdale, Tempe, Chandler, Mesa area trails only Charlotte NC, Austin TX and Raleigh NC in percentage increases over the last year.

It is estimated that 350 new families a day are moving to the area. These new families are going to need somewhere to live, and with the housing prices and interest rates the way they are today there is plenty of great opportunities for them.

Last year we saw an increase of 2.78% in population. There are plenty of reasons to move to the area, the weather of course being one of the main ones. Another is our economy. We hear about the high unemployment numbers, but the Phoenix area unemployment numbers in January of 2009 was roughly 6.7%, much lower than the 8% national average.

Will the Phoenix housing market recover overnight? Of course not, but that does not mean it will not recover sooner than most parts of the country. The Phoenix area is a desirable relocation destination and as long as we continue to remain so houses will continue to sell.