Green Shoots
For those of you who watched the Fed Chairman on 60 minutes you already know about the “Green Shoots.” Bernanke talked about the signs of the economy reviving in terms of those shoots. He said that the banks are beginning to loan again and that the Fed is in the process of buying some of the “toxic assets” that the banks own now to free up even more capital to lend money. Because inflation is low, he is of the opinion that the Stimulus is working. His warning though, is that when the economy starts to ramp up that the Fed will raise interest rates to control inflation and keep the economy from over heating.
Now is the time to buy real estate, while rates are still low. Higher rates are inevitable, and real estate prices will rise when the inventory is in line with demand. Inventory levels have dropped for the last two month, and mortgage interest rates have been creeping up already. If you’re thinking of a move, or if you are a first time home buyer, don’t delay any longer. There has never been a better time to buy a new home and the circumstances of this opportunity may not return in our life time.
Dan Frison - 208-472-8600 - dan@IdahoAdvantage.com
