That’s a pretty fair question to ask as the economic news gets darker with each passing day despite all efforts,thus far, from our government.
As a Reuters story says today, “consumer confidence plumbed historic lows in January and home prices fell at a record pace in November…”
Of course, a big reason remains the general unwillingness of banks to take all that taxpayer money they have received and step up their lending.
If you believe the “experts” (and, face it, who can nowadays?) the banks won’t continue lending till they can unload all that bad debt on their books and that is not likely to happen unless the government, in effect, nationalizes the banks in exchange for, in effect, wiping out all that bad stuff that has ground things to a halt for the most part.
Real estate remains the key, most believe, to helping resolve this financial crisis. But, that has not happened as yet.
What needs to be seen is whether recent decreases in mortgage rates have sparked some real life into the real estate market?
The answer appears to be, sort of. True, sales of homes that have been foreclosed upon have gone up of late…meaning those lucky enough to have both money and a really good credit score…were able to pick up some bargains.
But it is not nearly enough.
Home prices took yet another nose dive in November from the previous year…down a record 18.2 percent.
And, says Reuters, “prices in 20 metropolitan areas tracked by the Home Price Index fell 2.2 percent from October. Prices in 11 metro areas fell at record rates from a year earlier, while the drop in 14 citites was more than 10 percent below the year-earlier level.”
Of course, no one knows how this picture will change…if at all…once President Obama’s financial rescue plan passes Congress, in one form or another?