All I Want For Xmas Is…

All I want for Christmas is my two par-tees, my two par-tees, my two par-tees, all I want for Christmas is my two par-tees, so we can have a merry Christmas.  So the song goes… sort of…  No I’m not talking about the office parties and family gatherings… I’m talking about the Republicans and the Democrats.  All I want is for these two organizations to work together and then get the heck out of the way.  The data is adding up.  The economy is improving despite Washington.  However, as we saw with the near Government shut down in August, the feuding parties can derail our prospects as quick as you can say, Santa’s little helper.  Consider this: Jobless claims: down.  Employment: up.  Home sales: up.  Consumer confidence: up.  Consumer Spending: up.  Homes in Default: down.  Foreclosure Actions: up but shadow inventory down.  Corporate profits: up.  I could go on like this for an entire page because it’s really happening.  But any recovery is predicated on not letting petty Party politics get in the way.

We know for example that last June housing was looking better and at that time I blogged that the worst was over.  It even got me quoted on a Philadelphia radio station. Then suddenly the bottom fell out.  Why? The debt ceiling debacle.  So after suffering an enormous setback, we have finally put that behind us and our economy is improving ever so slightly.  The government’s hot air blew us off course and we’re just now finding our way back.

In my local housing market like so many local housing markets, things aren’t so bad.  Our inventory is low.  Interest rates are stupid low and rents are crazy high.  I have a stack of rental applications for a 3 bedroom, 2 bath, 1200 square foot home with Formica countertops that was built in the 1970’s – all people hoping to get this place and willing to pay $2,050 a month for it.  Why? Because they’ve harmed their credit during their struggle to survive the Great Recession.  Many of these folks will be buyers in a few years after they repair their credit, but for now they are renting and paying top dollar in rent.  When rent becomes the same as buying, the choice to buy becomes far easier.  If you picture the scales of justice where one side is renting and the other owning, the owning side of the scale is flat on the table with the benefits far outweighing the risk of further downside home price depreciation.  Yes there are plenty of naysayers out there talking up a continued decline, lack of income growth and high paying job growth, but I take the position that every fire starts with good bits of kindling and we’re seeing that economic kindling smoldering across the country, in all of these reports.

It’s true that our current economic growth is currently insufficient to pull us out of our economic doldrums and move us forward.  But baby steps are what they are but they’re a far cry from crawling of worse, falling backwards.  This happened to us in August, but it mustn’t happen again.  So this holiday season let’s just hope that Congress and the President can get it together and pass the kind of tax legislation that will help us over the next year.  Then, get out of the way Scrooge, because the Ghost of Christmas yet to come is pointing us in the right direction, provided we learn the lessons from the recent past.

About Tim Freund

Tim Freund has been a licensed real estate agent/broker since 1990. He spent 14 years as a new home sales rep, ran his own boutique resale brokerage for 5 years and is currently an Estates Director for Dilbeck Estates/Christie's International Estates in Westlake Village, Ca. Tim is a Certified Residential Specialist (CRS), an Accredited Buyer's Representative (ABR), a Corporate Mobilty Specialist (CMS) and a Senior Real Estate Specialist (SRES). Tim has successfully negotiated a loan modification for a client and has been a professional short sale negotiator. Tim sells along the Los Angeles and Ventura County lines, “from LA to Ventura..”. Tim has been married 31 years, has 2 children, is a native Californian and has been a resident of the Conejo Valley since 1991.
This entry was posted in Economics, Real Estate and tagged , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s