American Recovery and Reinvestment Act

The $800 Billion “Stimulus Package” has a provision in it to help home buyers.  Specifically, there is now an $8,000 credit to homebuyers (compared to the previous $7,500) who buy between 1/1/09 and 12/31/09.  This money does not have to be paid back if the home is not sold within 3 years.  More specific details of this plan will be released on March 4th.

There are other provisions designed to help homeowners refinance, and help keep them out of foreclosure.  All in all, there should be some upward movement to the Real Estate market this spring and summer, but don’t plan on a complete recovery of the market in 2009.  Anything that stimulates buyers and enables homeowners to keep their homes is welcome at this point.

Our local newspaper yesterday had an article on the front page detailing the fact that home sales are at their lowest levels ever, since they began recording these stats in 1992.  We all know this.  We need some articles pointing to the incredibly low interest rates (cheap money) and excellent homes on the market (good deals out there).  Let’s get some positive news going, that will spur the econonmy as much (or more) than the “Stimulus Package” will. 

The only way out of this is vicious negative circle we are in is for people to start having confidence in their economy and spend money again.  That will lead to jobs being created and more people employed, and increased earnings.  The best way (in my opinion) to start the ball rolling is to not only think positive, but to show the people the positive signs that are out there.  It’s time to quit lamenting how bad things are and turn our attitude around.  THAT’S the way to kick-start the economy. 

The economy is mostly affected by consumer confidence and thus their spending habits.  Confidence might be based on reality, OR it might not be.  That confidence can be boosted AND deflated artificially.  Hearing every single day how bad things are by our news outlets doesn’t help consumer confidence.  Let’s start by looking at all the positive things happening and work-up from there.