Despite Predicted 4.5% Growth at End of 2009, Analysts Worry Forward Momentum May Fade with Gov’t Stimulus

 In a CBS news article they are saying that the economy may have grown at the end of last year for maybe the second straight quarter and possibly at the fastest pace in nearly four years?

 They ask the question has the recession ended. Some economists are saying yes but the ones that count officially are staying quiet.

We know that the economy has been “juiced” by the stimulus money so when that dries up where will we be? In fact will we even fell the effects of that when it happens or a few months later when we are behind the curve yet again?

They say that the housing market is creeping back and that was the cause of the recession in the first place. I have heard from some new home sales leaders in the Northwest that sales have picked up. Is that due to the spring market springing early this year or the fact that people are really out there ready to buy? I think a little of both which is easy to say but I have seen this type of behavior before. The buying cycles are real and affect the market and the economy.

In addition some markets like the Columbia River Gorge have too many home sites developed for the market to adequately absorb them in a timely manner. That creates stalling in the minds of buyers as they have no urgency to purchase, no fear of losing that “home site” to another.

It will take quite some time for this economy to crawl out of the hole it is in and that may be a few years? We need to be prepared for that and if you are in the market to buy  most anything you may find many compelling “deals” out there that you just can’t  pass up!