The Springfield Illinois Two Step The Springfield Illinois Two Step June 4 Willy Caballero Manchester City Jersey
, 2012 | Author: William Wallace | Posted in Education
Article by Fritz Pfister
Following four consecutive years (2004-2007) with local brokers of The Capital Area Association of Realtors reporting over 4000 home sales annually, sales slipped in 2008 to below 3500, and are headed lower in 2009.
The skyrocketing price of gas last year at this time, followed by food and utility costs, sent consumer spending into the tank. Families began pulling in their horns when faced with this unexpected increase in the cost of living. Then the finacial crisis hit with the housing market imploding across the nation that sent Wall Street into the tank causing families 401k’s to become 201k’s.
Enter the Obama administration passing a stimulus bill of historic proportions filled with over 8000 earmarks, an omnibus spending bill increasing federal spending by 8%, and then a budget with one point eight trillion dollars in deficit spending.
People were already mad at the Bush administration’s seven hundred billion dollar TARP program Wilfried Bony Manchester City Jersey , auto bailout (how’s that working out?), AIG bailout, and half trillion dollar deficit. Obama merely tripled down on deficit spending, expanded the bailouts, took control of banks, GM, and Chrysler. The Bush deficit was one point three trillion over eight years Vincent Kompany Manchester City Jersey , Obama’s deficit is projected to be ten trillion in eight years. This is the final nail in the consumer confidence coffin.
Tax breaks for first time home buyers were included in the stimulus plan, and the Federal Reserve pumped one point three trillion dollars into treasuries which have artificially lowered mortgage rates to fifty year lows in the four to five percent range. Home prices are down in most markets, foreclosed properties are priced for a fire sale, and the inventory of homes for sale is at near record levels. Ideal conditions to be a home buyer.
The result in home sales for the greater Springfield market? Sales down in January. Sales down in February. Sales up in March. Sales down in April, and with four business days remaining in May, sales are down (13.9%). Sales pending, the future indicator of closed sales is up in May (13.6%) that could send closed home sales up in June.
There you have it Tosin Adarabioyo Manchester City Jersey , the Springfield two step. Two months down, one month up. The trend for 2009.
With ideal market conditions for home buying, why the slow pace of sales?
Impending attacks on the family budget from local, state, and federal governments with higher taxation, and the lack of jobs. Unemployment is now up to 9.4% in Illinois with no silver lining in the clouds.
Locally the city of Springfield is in desperate need for infrastructure improvements. Ad campaigns are under way funded by unions, and business groups telling of the need Sergio Aguero Manchester City Jersey , but no mention of how to pay. Higher taxes are coming to pay for this capital improvement program.
The state? You name it. Sales taxes on previously exempt products, income taxes, sin taxes, license fees, title fees, and corporate taxes are all projected to go higher.
The federal government will have to do more than just raise the tax on income earners with 0,000 in annual income or they won’t even be able to pay the interest on their profligate spending. Credit card companies are saints compared to Obama when disclosing true financial costs.
Add in Obama’s Universal Health care initiative Samir Nasri Manchester City Jersey , and you will have trillions of dollars more in debt over eight years to pay for, and end up with socialized rationed health care.
Now comes Obama’s energy plan to go green with his cap and trade initiative. Conservative estimates are this back door tax will cause the average family household utility bill to increase 00 a year, not to mention the Obamamobile mandated higher cafe standard increasing the price of a car 00. Obama says you’ll recover this added expense through gas savings. If you believe that, you live in the land of Oz.
Then there are the Obama projections, rather rosy ones in fact, that the GDP will increase 3.5% starting in 2010. If Obama is wrong, government revenues will shrink. In case you don’t know what that means Raheem Sterling Manchester City Jersey , it is this; Obama will be spending four times as much money as Bush, while taking in less tax revenue. How will the federal bills get paid? Borrow, print the money, or raise taxes. One or any combination of these will lead to disastrous results, primarily hyper inflation, and higher interest rates.
So the best market conditions in history to buy a home hasn’t produced droves of home buyers rushing to the market. Why? Because the American consumer is scared to death of the financial threats, and uncertainty they are facing. Tax increases from every level of government. Higher fuel and utility costs from an insane energy proposal. Inflation destroying the value of the dollar Patrick Roberts Manchester City Jersey , and driving up interest rates.
Guess the two step isn’t so bad, two months down, one month up; when you consider the threats upon the American families jobs, incomes, savings, retirement accounts, and value of their dollars. All brought to you with the help of your government. Considering the folly of our government Pablo Zabaleta Manchester City Jersey , it is simply amazing consumer confidence has risen above 35%.
If you will be selling a home this year, get ready for the dance! Now follow the market, two steps back, one step forward. Two steps back, one step forward. Two steps back…ooooops, you just fell off the dance floor!
About the Author
Fritz Pfister is a Realtor with REMAX Professionals Springfield IL. and a leader in the local real estate market hosting a one hour radio program, now in its’ 14th year. With over 2000 real estate sales Pablo Maffeo Manchester City Jersey , Fritz is recognized as a market expert.Fritz’s Work with The Big G. Cheap MLB Jerseys Wholesale Jerseys Wholesale Jerseys Cheap Jerseys Wholesale Cheap NFL Jerseys Cheap NFL Jerseys Wholesale Jerseys Wholesale NFL Jerseys From China Wholesale Nike NFL Jerseys China Wholesale Soccer Jerseys Free Shipping