Why 2012 Can Be a Good Year!

Posted on January 16, 2012. Filed under: Financial Update, Market News | Tags: 2012, economy, outlook, real estate |

Happy New Year! 2012 is going to be GREAT!

Of course, you would expect me to say this, right? OK, I admit I’m optimistic by nature and I know that Realtors can sometimes get excited. However, before you discount my outlook as sales hype, I think I’ve got good reasons to be looking forward to 2012 and telling you about it!
It’s no secret that as the economy goes, so does the real estate industry. On that note, 2012 was welcomed by some great economic news. The employment level is trending upward and the number of new jobs created in the last quarter is the highest in 3 years, Wow! Even more relevant news is that the employment picture is better in Silicon Valley right where we live and work!
This data is significant on a number of levels for real estate. First, the main influences in driving real estate decisions is the job market. People don’t buy until they’re employed and emotionally secure about their income. Likewise, banks more likely provide loans to borrowers with stable incomes.
Since I’m on the subject of loans, the Fed is working on lawmakers to loosen lending rules in 2012. While low interest rates have encouraged home purchases, qualification standards have been the main hurdle in getting buyers into new homes. If lending qualifications ease to more realistic and attainable levels, purchase activity can really take off.
So, as you can see there are plenty of reasons to be optimistic for 2012. While you’ll never hear me make guarantees about future events, I will say I’m excited about what’s ahead for real estate and our broader economy.