As we all know, the key market indicators are important in understanding where the real estate market is headed. More important, what is the market doing right now. Home sellers need to understand the market from week-to-week, month-to-month so that they can price and adjust as needed to get their homes sold.
So where are we at right now? In each of the 10 years prior to 2008, Americans saved $250 billion. The savings rate was about 2-3%. Post financial crisis, Americans are saving $600 billion a year. Vehicle sales have fallen to about 12 million units a year over the past 3 years, well below the 17 million unit sales pace before the slowdown.
More important, home sales are down – no surprise. New and existing home sales dropt to 1.2 million and 7.1 million in 2005. The comparable figures are now 300,000 and 5 million respectively. It’s going to take a turn around on jobs for this to get better. We are not there yet. I wish I could predict for you when that will be. All I can say is, it will not be soon.
MICHELLE J. LANE, Realtor
Century 21 Commonwealth
CELL: 617 584-3904