Recession: Double-Dip or Final Stage


 What some people consider a double-dip recession, others view simply as the continuation of the recession that has gripped the nation for the past couple of years. Take Real Estate Center Chief Economist Dr. Mark Dotzour, for example.


"We shouldn’t view this renewed softness in the economy as another downturn but just a continuation of the recession that was interrupted by a trillion dollars in federal stimulus that temporarily interrupted the cycle," Dotzour said Wednesday at the U.S. Real Estate Opportunity and Private Investing Forum in New York.

He said this is the necessary and final stage of the recession where government at federal, state and local levels is finally rightsizing by reducing spending and employment to more sustainable levels.

"Households and businesses have already done this," Dotzour said. "Once this adjustment to sustainable levels of government spending and employment is reached, then we will begin the slow process of real economic recovery."

 

The local Grayson County market is certainly stagnant with fewer sales year to date compared to last year. But, still better than 2009 year to date. So, I believe that Dr. Dotzour is on the mark with his opinion that this is the final stage of the recession that has been going on for a couple of years.

Even so, there have been over 400 homes sold year to date. So if you are thinking about selling make sure you get a comprehensive Home Audit based on comparables that are most like your property. The Home Audit is not just an analysis of comparables but also a strategy to guarantee that you are listed most favorably in the top 1/3 of your comparables. This is a critical part of the listing process because more homes expired, or were taken off the market, last year than were sold.

 

Only an experienced agent can provide you with all the data that makes up a complex Home Audit. Insist that the company you call sends out one of the top3 agents in their company----not a new agent with little or no experience.

Until next time,

 

Pat Lowry, Broker