We understand that we are still a long way away from a strong economy and there are still potholes we must navigate around in order to keep the recovery marching forward. However, there are plenty of reasons to be optimistic at the start of this new year.
The most important reason to be optimistic is the improving state of the real estate market as existing and new home sales continue to increase. What a difference a year makes in this regard. Last year at this time we were listening to market prognosticators telling us about how long it will take to overcome the shadow inventory hanging over the market. ?
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Some said it would be decades before the market recovered. Meanwhile, the population of our country has been increasing for years and we have not been building enough homes to house this population growth. As the economy improves, children are moving out on their own and creating more demand. This demand creates more economic growth. Are we at the start of the virtuous cycle we have been waiting on for years? Time will tell, but we start this new year with more optimism about our chances.
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