Comments Off | Sunday, January 2, 2011
2011 will be the start of something big for real estate. The year of the rabbit signifies a year of multiplication. In many cultures the number 11 is a significant number for many reasons. 1+1=2 and 11×2 = 22 and so forth.
The stair stepping mode we’ve experienced in 2009 and 2010 will continue into 2011. As we head toward an election year politicians will continue to build favor with the voters and with this strategy, the economy is headed toward a turn around. The mist of the past is about to dissolve, and be replaced with optimism and a new outlook.
What does all of this mean for home buyers, sellers, investors and the professional real estate arena? Along with these positive economic trends, Americans will be able to put away greater wealth in 2011. Many consumers have learned to curtail spending and to live more reasonably within their means. Credit companies have raised rates and decreased credit limits to stay in business. Banks have learned how to move the inventory caused by foreclosures and short sale activity. Rents are on the rise. We are in recovery and are headed back to a more normal pre-recession economic climate……………
SPENDING POWER: Unemployment rates are lower now than a year ago and expected to keeping declining. This is good news for the economy. Consumers have achieved greater spending power over the past 2 years, mainly due to fall prices. Consumer confidence is rising, and this trend is expected to continue for 2011.
The downward spiral of the past is past. Business has a healthier outlook for the year ahead, as consumer seek to get market share.
Take for example: Ford Motor Company, the second largest auto manufacturer in the U.S. and fourth largest in the world. Ford experienced a dramatic decline in market share following the mid 90’s, caused by costly manufacturing facilities, pension obligations, high fuel prices, and stagnant sales. In the past several years, Ford has launched a massive turnaround by improving operational efficiencies, developing a smaller, more fuel efficient product line and consolidating its brands.
- On October 1, Ford announced its monthly sales report for September. The company said that Ford, Lincoln and Mercury sales were up 46% versus a year ago and that its retail market share increased for the 23rd time in the last 24 months. Ford credited the results to its expanding line of fuel-efficient vehicles and a strong international growth strategy.
- Following the September sales release, Morgan Stanley issued a very bullish outlook, naming Ford its “Best Idea” and placing a $20 price target on the stock, nearly 50% higher than the current price tag.
- The long awaited initial public offering for General Motors is set to be among the largest ever…………..click here to read the entire article
I leave you with some quotations from the famous cartoon rabbit Bugs Bunny, perhaps the most famous fictional and loved rabbit of all time.
Quotations:
I don’t ask questions. I just have fun!’
&
‘Don’t take life too seriously. You’ll never get out of it alive!’
What’s up Doc? and
I aint upside-downy Doc,YOU are!
I dares ya ta’ step across this line.
Unga bunga binga inga binga binga bunga
HAPPY NEW YEAR!!
