Tuesday, December 2, 2008
As sellers today please remember that there is uncertianty among buyers they must see value before they will make a commitment and they all seam to want something extra. It will be interresting too see if we have a government change next week and how that will effect the financial and real estate markets here over the next 6 months. Does that mean we may see a increase in inventories my guess is yes as my opinion is that a government change will effect our economy directly. I think a balanced market is about 3 months supply of inventory and our inventory level is higher than that now. We are seeing European counties offer 0% mortgage rates. Are we headed in that direction? Credit is tightening with the banks because their loss loan provisions are increasing, credit amounts for consumers thru credit cards are being lowered. I am seeing forcasts of oil at about $43.00 a barrel in the first quarter and very limited asset growth next year. As I see it our first quarter will be a challenge no matter what we do.
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