It really should not be a surprise to anyone that Fannie Me is calling 2012 the year of the Political Economy…
Late last week, Fannie released their latest Economics and Mortgage Market Analysis and the dominant theme was one of uncertainty:
Fiscal policy issues and political economic uncertainty will take center stage in determining the degree of consumer and business activity – key drivers of economic growth – during 2012
Sounds like the uncertainty I mentioned in The Beatings Will Continue Until Morale Improves is recognized by Fannie’s economists. So the 69% think that the economy is on the wrong track are probably going to really be unhappy with the political grandstanding we will have to endure during an election year.
Sadly, the behavior of the politicians will NOT help the American economy or the real estate market to recover any faster. Or create many jobs…
You and I would probably agree that Fannie was correct that the economy’s performance in 2011 was disappointing.
30,000 Homes Sold Per Month in 2011
You need to understand that according to the latest NAR Existing Home Sales report, about 30,000 homes sold each month in 2011. I am sure that number will dip just a hair once they release the numbers for December 2011.
Consumers need to be confident in their decision to buy a home IF the time is right for them to buy a home. And we need to consider that…
The Economy is Expected to Get Better in 2012
Fannie Mae is expecting economic growth to be slow for the first part of 2012 but better for the 2nd half. Fannie expects the economy to grow 2.3% in 2012 which is much better than their estimate of 1.7% in 2011.
The Take Away
Some will attack any good news during the coming year because of the election. And we have to take anything said that is positive with a grain of salt for the same reason. Yet there is no denying:
- 30,000 Homes Sold Per Month in 2011
- Mortgage Rates Are LOW
- Home Are More Affordable Than Just a Few Years Ago
Each and every day, homes are being sold. There are many many people buying homes because the time is right for them. 2012 will be filled with plenty of mud slinging and outright lies by the politicians.
Sellers need to remain optimistic because there are homes selling each and every day!
You need to get the facts and understand that there is a great opportunity for home buyers NOW.