Current Analysis

Our “regular” market – that is the market excluding the investors for distressed properties – remains quiet. So long as the entire economy of the country remains questionable, and people who want to sell their homes and move to California, cannot, the market will remain quiet.

 

There was a slight opening, when the US economy was hurting and the dollar was low against the Euro that Europeans saw an opportunity to buy. Now, our sub-prime bust has rippled across the pond, and the Europeans, and Asians alike are playing turtle.

 

But money is a commodity, and banks who are paying mid-West farmers a small interest rate cannot just sit on their money – they must lend it at a rate higher than the interest they are paying.

 

But, banks can afford to sit for awhile, and right now they are sitting.

 

So are buyers, even though they may have scores sufficiently high to get a loan, they can’t sell their current homes.

 

After the election, regardless of who wins, there is at least a temporary moment of euphoria – or perhaps it is just relief that the presidential campaign is over – and then our economy has a chance to regroup and recover.

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