This week has been full of some great showings and a few BIG pendings!! The hype of an improved market is giving many Buyers the permission to spend their pent up cash and make investments for the future.
Interests rates are low and we are seeing good movement, those Sellers who have been patient are reaping their rewards for sure!
Some news to be aware of from Willamette Valley Bank, Stuart Brown:
Quantitative Easing? Quantitative Easing is the concept of the Fed becoming a buyer of Treasuries and Bonds to try and stimulate the economy.
Why does the Fed do Quantitative Easing? Oftentimes, the Fed does Quantitative Easing when they are hoping to (1) create inflation and avoid a deflationary economy, (2) lower the unemployment rate, and (3) boost Stock prices. For this latest round of Quantitative Easing, the Fed especially wanted to help stimulate the housing market and our economy overall.
And the housing market has shown signs of improvement lately. While Housing Starts in January declined overall, single family Housing Starts rose to its highest rate since July 2008. Building Permits, a sign of future construction, also came in above expectations. These reports were the latest in a series of reports showing that the housing market is recovering.
What is all the Fed chatter about? Last week, the minutes from the Fed’s January meeting of the Federal Open Market Committee were released. The minutes noted that several Fed members would like to halt the Quantitative Easing program sooner than planned, because they are concerned about inflation. However, it’s important to note that last week’s Producer and Consumer Price Index Reports showed that inflation at both the wholesale and consumer levels remained tame in January.
On the flip side, other Fed members are concerned that halting the program too soon could end the recovery in the housing market, and hinder our economic recovery overall. And given that the increase in the payroll tax in January left consumers with less money in their paychecks, and that Walmart has reported that February sales were the weakest in seven years, this is an important factor to consider as well.
Nonetheless we do know that Buyers are looking and ultimately we will see some movement in 2013!!!
Please look at our pendings and solds for the week!