The U.S. Economy and Real Estate

According to Bloomberg.com, The U.S. economy grew in the third quarter for the first time in more than a year, propelled by stimulus-driven gains in consumer spending and home building. It touched 3.5% from July through September after shrinking the previous four quarters. Household purchases climbed 3.4%, the most in more than two years. While all this augurs well for the future, pessimists predict a slump in the 4th quarter predicting negative growth of a ‘W’ recession. Nonetheless the rate of job losses fell for the first time in months, which is promising. Job losses being a lagging indicator are a positive sign that there may in fact be a genuine recovery.

Residential construction jumped at a 23 percent annual rate last quarter, the first gain in almost four years and the biggest since 1986. The rebound added 0.5 percentage point to growth. Homebuilding rebounded as sales climbed, propelled in part by an $8,000 tax credit for first-time buyers which has since been extended and Federal purchases of mortgage-backed securities that helped lower borrowing costs.

Real Estate in San Jose

Dale Warfel, a licensed realtor in the San Jose area has for the last few weeks, been advocating investment in real estate, prior to a U turn in prices. Dale Warfel has at his finger tips, the prevailing real-estate statistics in the Bay Area. Do email him at Dale@DaleWarfel.com for a market update on homes in Willow Glen, Almaden Valley and Santa Teresa or any other location in the vast territory he covers. Meanwhile click on his website www.dalewarfel.com for a cross-section of homes for sale in his portfolio.