Real Estate and our Economy: Forecasting the Future

I attended a forum on Forecasting the Future. Dr. Lawrence Yun, Chief Economist and Tom Gillaspy, Minnesota State Demographer, stated facts and opinions on many topics that affect the future of all of us. I was relieved that it was not the "doom and gloom" that we all keep hearing and reading about. Yet, they were honest about the trying state our economy is currently in. I thought you may be interested in some of the highlights...

• Minnesota is a prosperous, successful state! We rank 4^th in most livable states, 8^th in the lowest amount of poverty and almost the highest in the level of employment ratios.
• Minnesota is an aging state. Empty nesters and singles over age 65 are soon going to be the #1 household demographic. Married couples with kids will stay stagnant.
• This year's high school senior class is the largest class we will see for years to come.
• We are in a recession, but the question is how deep it will be. Time will tell...
• We are in a once in a lifetime credit crisis. Historically, Americans have experienced similar situations before and have come back strong.
• The recent "bail-out" should really be considered an "investment" in America's future.
• The housing market recovery needs to happen BEFORE the economic recovery.
• With interest rates still being historically low, the biggest factor impacting our housing market is the lack of buyer confidence.
• There is a pent-up demand for housing. More than ever, there are people taking on roommates and young adults living with parents longer. This trend, though, can not continue indefinitely. These buyers will enter the housing market soon.
• The steepest price reduction in home values is in areas that have been hit the hardest by foreclosures.
• To put foreclosures in perspective, only 1.3 out of every 100 households are being foreclosed on (this number has historically been around ½ of a household). So, the numbers are up, but the huge majority of homeowners still have equity in their homes.
• Dr. Yun feels the local housing market is at or near bottom now based on recent, positive data.
• The consensus among economists is that the home prices will stabilize into 2009.

As Americans and consumers, we can help improve our current situation and our future...

Home values are more affordable

Interest rates are low AND

The Market/Economy needs our help!

There has never been a more crucial time to buy a home than now! Please help me pass the word along to everyone you know that the sky is not falling, there is money to be saved and made in real estate right now, and it's up to all of us to make a difference.

Thank you