There is finally some good news this week on the economy with Gross Domestic Product (GDP) showing some positive signs, and the Case-Shiller Index, one of the most widely watched source of price information about the housing market, is equally optimistic. This index tracks large urban markets, and has been very negative for the last couple of years. I heard Case interviewed this week and he was very positive recommending that people buy given the great interest rates, and the fact that prices in a lot of cases are down 50% from the peak. Their recent numbers showed May prices down 17.1 % compared with May 2008 - as bad as that appears, this was the fourth consecutive month that price declines slowed which at least shows that they are declines are slowing.
Another interesting factor to note is that when May was compared with April the price index for 20 major cities showed a one half per cent gain - this is the first increase in the index in 34 months. The fact that affordability is at historic rates - according to Realtor.com "Most consumers aren't aware of how affordable homes have become today".
We have local economist Howard Blum speaking at the SJREI on Thursday night and he has some interesting insights on the market to share, and where it is headed from his perspective. As a very successful investor himself Howard is more than eminently qualified to address our group. We look forward to seeing you there!
Come join us next week for another great program.
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