Aug 29, 2006

After more than 2 years of interest rate increases, we finally got a reprieve earlier this month when the Fed decided to stay firm with interest rates. It is obvious that the Fed is concerned about the weakness in the housing market, and the effect on consumer spending by raising rates, so they paused. There is concern that too many rate hikes can lead the economy into a recession for 2007.

So where will rates go?

The Fed meets again on Sep 20 and the minutes from the last meeting give no indication of what the Fed will do. Thus there is a lot of confusion. Some analysts believe that another rate hike is imminent, while others believe that they will continue their pause, and wait until December for another rate increase.

We will have to just wait and see.....

August 5, 2006

The market has changed.

There is no doubt about it that the real estate market has changed. Take a look at some of the data from the Greater Tampa Association of Realtors (YTD May)

Residential Listings
YTD May 2005 - 4,255
YTD May 2006 - 15,531

More than three times as much inventory!

Total Residential Sales
YTD May 2005 - 10,988
YTD May 2006 - 9,645

If you are in the process of selling your house, it is more important than ever that it is priced and marketed correctly. Otherwise, it will just sit and sit and sit and sit on the market longer than anticipated.

If you are looking for a Real Estate Professional to help you, I can refer you to some excellent agents.