By Boyd E. Jeffery
This is the million dollar question…However, media outlets in need of attracting attention are headlining conflicting reports on a daily basis. So how does the average American homeowner determine what is really going on with the economy? That too however, is the million dollar question…
The Los Angeles Times reports, “New signs raise hopes for recovery” in the headline, but cautions that “states such as California face hurdles…(and) Bernanke’s rally-sparking reassurance disguises the reality that many of the most populous states -- such as California and Florida, long accustomed to serving as dynamos of recovery and growth -- may not see much cause for rejoicing any time soon.”--August 22, 2009.
Another report in the Times declared, “Home prices may be stabilizing, market tracker shows” in the headline, but “Los Angeles prices continued to fall” was reported in the body of the article. -- July 29, 2009.
Many people tend to be attracted to the headlines and therefore miss out on the real story within the story. This causes the confusion we are experiencing in regards to consumer sentiment. There are stories that accurately depict the situation, such as the Wall Street Journal reporting that the reason for a tumultuous economic environment is due to a disparity between consumer income and consumer spending. “Consumers (have) rock-solid jobs -- but also legions of debt-strapped individuals struggling to keep their noses above water,” the Journal article noted. “This split helps explain the patchiness of the recovery that appears to be taking hold after the worst recession in a half-century.”
Americans have long been accused of spending more than they earn, and the last 10 years have been no different. Actually, lenders made it too easy with stated income loans, no money down loans and short-term teaser rates that put many good and bad credit homeowners in mortgages that are either in default or on the brink of default.
My new company is a Service Company aimed at guiding consumers through difficult times and providing courage to those who need it. It is called William Shaw Real Estate Services and I am Boyd E. Jeffery, broker of record for over $181 million in South Bay real estate sales.
I have much more to talk about, so please check out my exciting new real estate blog at www.wsrealestateservices.com. •