Housing Weighs on Growth Forecast

Housing Weighs on Growth Forecast

Troubles in the U.S. housing market will weigh on economic growth this year even more than earlier estimated.   According to a forecast of economists released recently, real gross domestic product, the government's broadest measure of economic output, is expected to advance 2.3 percent in 2007.  That is down from an earlier estimate in February for 2.8 percent growth.

However, growth in 2008 is expected to pick up to 3.1 percent after the housing market bottoms out.

The survey of 48 economists taken between April 19 and May 8, found that housing market troubles, particularly those in the risky subprime mortgage lending market, will drag out through this year.  Almost half of those surveyed expect the bottom in housing will not be reached until the fourth quarter.

All of this bad news about housing and how bad the real estate market is right now equates to there being no better time than now to find the best value for your money when shopping for a home.  Savvy investors have always known to "buy when the market is down".. that's when the best return on the investment is usually realized.  To find out whether now is the best time for you to own a home, give us a call.  There is no obligation for us to talk with you about your options.