Depending on who you choose to believe the US economy is either in for a positive recovery or further decline. On my weekly radio show( Real Estate Lifestyle on blogtalk.com) requires me to research news and information on the housing market nationwide. In doing so, i encounter varying opinions and prognosis for 2010. There is even a varying opinions on whether 2010 is actually the start of new decade. So getting a consensus on anything these days in America is difficult because we are split on everything including the economy. Case Shiller reported in its recent research on housing that sales keep improving month over month. At a recent presentation for NHC Todd Britsch, president of New Home Trends predicted a severe problem if banks continue to refuse to lend in order to allow builders to move forward. I agree with his premise.
Others are not so optimistic. Most experts are concerned about the billions of dollars in commercial assets which could default and further stall the recovery. The Federal Governments stimulus or subsidy programs are set to expire in March of this year. The first time buyer program generated 40% spike in sales, yet according to National Association Of Reactors entry level product is the only product really moving.
A new tern "shadow inventory" has now emerged.This suggest inventory held by banks or loans in default which could at some point be added to the market, dampening the positive sales numbers being reported by those who keep such statistics.
Here is my take. America is a nation of resilience. Although we cannot agree on everything political or otherwise, we all agree on one thing, The survival of America. This country has always found a way to fight its way through incredible odds.Many believe the Chinese own America because it holds so much of our treasury debt. But the same thing was said about the Japanese in the late 80's and 90's. We saw how that turned out. America sometimes resemble the song by Charlie Daniels band made popular in the 70's called the "The Devil Went Down to Georgia". What looks impossible to the natural eye can be deceiving.And if you you believe you are the better one then you are. America and everyone within it shores must believe stronger in our outcome than our problems.For that reason I believe 2010 will continue to be a year of recovery. how do you feel about 2010?