Ed's Blog

Whether or not you believe the economy is on the rebound, there are clearly some indications that the housing market is recovering, especially here in San Francisco. And well, if you’re of the belief that the economic collapse was –at least partly, if not mostly- to blame for the meltdown of our economy, then perhaps the housing recovery may be the precursor to a national economic recovery.

Consider these small but significant items of interest.

1. The FED has decided to keep interest rates the same. Low. Very low in fact.

2. Mortgage rates remain incredibly low. 15 year fixed at less than 5%? 30 year fixed at right around 5%? Jumbos under 6%? Wow! Who would have believed these low rates would still be here?

3. Home values are climbing again. In fact, here in the Bay Area according to several different studies, home prices here are up 12% year over year. (Of course I know that they are still down from a few years ago, but progress toward recovery of values is still welcome, even if it’s “only” 12% at a time).

4. The stock market is fairing pretty well in spite of Europe’s debt woes. Let’s hope the problems don’t rattle investors too much.

5. Foreclosures continue to decline. In the first quarter of 2010, foreclosures were down more than 4% from the previous quarter, and down a whopping 40% from the same time last year. I know there’s “shadow inventory” out there, but this is still good news.

I don’t know about you, but to me these items signify a reemerging consumer confidence in our housing market. And that’s good news for the economy as a whole.

Till next time!