By Scott Robinson of Gateway Mortgage Group
Almost a decade ago the first salvos of the subprime mortgage crisis were being felt. We know now that what started in our real estate sector spread not only to our entire economy, but to great swaths of the world as well. It was as if we pulled the world into recession. As the world’s largest economy, it is not surprising that as we sunk, we took much of the world with us.
Now that our economy is recovering, the world is still languishing in many areas. The question is — can we now lift the world out of recession? We think that it is logical that this could happen. However, there is one factor which must be in place — our real estate market must be clearly recovered. The real estate markets led us into recession, and now they must lead us to prosperity.
This is why the monthly real estate data being released is so important. Last week we had existing and new home sales data released and the results were mixed, but the more important existing home sales figure was positive. This represents a decent start to the spring selling season. We are not saying that the jobs report next week will not be watched closely. The jobs numbers are very, very important. But employment will not keep improving without help from the real estate sector. The Federal Reserve Board is meeting as we release this newsletter and you can be sure the real estate sector will be on their mind as they prognosticate about the next employment report to be released next week.