Just over a week ago President Obama took the oath of office and many Americans are hopeful that the new administration will have a positive effect on the housing market. Has it already?
In just the past 4 days there has been a rally in the stock market, the first good news there in a while. That follows the continuation of very low interest rates, low inflation and the possible passing of the new economic stimulus package that goes before the House and Senate this week. Better times may be on the horizon.
It was noted recently that consumer sentiment rose by two percent in January over December and though no one can really say if the election of the new president had anything to do with it, sentiment seems to rise with him. This index was based on what people expected would happen in January and if the economy would start to improve.
The new economic stimulus will certainly help to create many jobs, and also help millions of households through tax breaks. And there's no doubt that a tax credit can help further additional sales, possibly up to several hundred thousand real estate transactions over the next year. Inflation is close to zero and mortgage rates are below 5%, for those with good credit, and a down payment. According to MDA DataQuick home sales are on the rise in Southern California by 50.5% compared to sales over a year ago.
So, is President Obama's boundless sense of hope and optimism contagious? For a lot of people it has been the case for a while. Nobody can truly know if good signs are a direct result of his administration's new perspective, but you can't ignore that "can do" attitude.