It's that time of year. The temperature begins to drop, the leaves start turning colors, and the Real Estate Housing market begins to take an upward swing. This is an exciting time to be involved in the Real Estate market. As a Realtor we say goodby to the dog days of summer, and usher in a whole new group of buyers and sellers. The summer market generally is a slower time for Realtors. Of course we are still completing transactions. But, with buyers and sellers taking summer vacations, enjoying the many festivities Chicago has to offer, the market tends to slow down a bit.
I anticipate a very busy fall market. With summer vacations over, festivals winding down many buyers and sellers shift their focus back to either buying or selling a home. We have just recently experienced a freeze in interest rates. For the first time in 18 sessions the Federal Reserve has not raised the interest rates (see my previous blog entry No Rate Hike...a Positive Signal). Also, the leasing market is coming to a close. Most leases end in September and October. So those who were once renting are now looking to buy. All this could make for a very busy, and productive, fall market.
Monday, August 21, 2006
Wednesday, August 16, 2006
No Rate Hike...A Positive Signal
Here is an article I saw from the National Association of Realtors (NAR). It talks about the Federal Reserve not raising the interest rates and the value it has on the housing economy. I thought it would be a good article to share with everyone. I hope you enjoy it as much as I did.
The decision this week by the Federal Reserve’s Federal Open Market Committee to not raise the federal funds rate for the 18th straight time indicates that the Federal Reserve recognizes the value of the housing economy to the national economy as a whole, the president of the NATIONAL ASSOCIATION OF REALTORS® says. “This move sends a very positive signal to the housing sector, which has been so robust over the past five years that it has sustained the economy while other sectors have lagged," says NAR President Thomas M. Stevens, senior vice president of NRT Inc. "Largely as a direct result of more than two years of interest rate hikes, the housing market today is fragile in some parts of the country. The Fed’s decision indicates that it realizes the vital role housing plays in the economy.” The decision by the Federal Open Market Committee leaves the banks’ prime lending rate, the benchmark for various consumer and business loans, at 8.25 percent. Before the Fed started raising rates in June 2004, the prime had been at 4 percent. Stevens says the Fed’s decision indicates it realizes the economy has slowed, especially the housing economy. “We can’t continue to raise rates without expecting the housing economy to suffer. That translates into higher costs for home buyers, slower sales and a lower level of economic activity in housing, which accounts for one-fourth to one-fifth of the gross domestic product,” he says.
The decision this week by the Federal Reserve’s Federal Open Market Committee to not raise the federal funds rate for the 18th straight time indicates that the Federal Reserve recognizes the value of the housing economy to the national economy as a whole, the president of the NATIONAL ASSOCIATION OF REALTORS® says. “This move sends a very positive signal to the housing sector, which has been so robust over the past five years that it has sustained the economy while other sectors have lagged," says NAR President Thomas M. Stevens, senior vice president of NRT Inc. "Largely as a direct result of more than two years of interest rate hikes, the housing market today is fragile in some parts of the country. The Fed’s decision indicates that it realizes the vital role housing plays in the economy.” The decision by the Federal Open Market Committee leaves the banks’ prime lending rate, the benchmark for various consumer and business loans, at 8.25 percent. Before the Fed started raising rates in June 2004, the prime had been at 4 percent. Stevens says the Fed’s decision indicates it realizes the economy has slowed, especially the housing economy. “We can’t continue to raise rates without expecting the housing economy to suffer. That translates into higher costs for home buyers, slower sales and a lower level of economic activity in housing, which accounts for one-fourth to one-fifth of the gross domestic product,” he says.
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