With the new year only weeks away, it's time to look ahead and embrace the future. The residential housing market has reason to be optimistic. Recently, President Obama extended the First Time Homebuyers Credit and expanded the program to include existing home buyers. This program concludes June 1, 2010. The pundits are asking, "What can be accomplished in six short months?"
Several positives will transpire: housing inventories will be consumed, demand will drive a spurt in new home construction and sales prices should stabilize. Additionally, as inventories shrink, builders will begin to build inventory again, albeit at a more conservative rate.
Even without the recent tax credit extension and program expansion, the NAHB was forecasting 35% growth for 2010. The economists are convinced all indicators point to strong single family housing growth. Historically, housing leads most industries into a recession and is also the first to lead the country out of recession.
Entry level homes will see the most activity, followed by move up. No matter how you slice it, the future looks brighter. Now is the time to prepare your business for what's ahead. Interest rates remain at historic lows even though credit is tight, money is still flowing, the DOW is back over 10,000 and climbing and inflation is in check.
The market highs experienced in 2006 are long gone. There's no looking back. It's a new environment, a new economy and each day is a new opportunity.