U.S. home sales increased 14 percent in the fourth quarter as a Federal Reserve program to purchase mortgage bonds and a tax credit for property buyers boosted demand for real estate.
In pure english, ther markets start to reboost themselves. Is this a good thing? Should we be careful? I would love to answer this two questions in this blog post.
A market reboost, and by 14 percent is generally a good think, the real estate market is the one that has suffered the most this crysis, so the best thing that we can do is wait and see what happens next.
I think we should be more than careful, because if we do not make smart loans and make loans that we can not aford to pay back there will be another crysis sooner or later. By being careful I mean that you don’t take the highest loan that you can get, you get the loan that you need.
In my own opinion I don’t really belive into this whole crysis thing because it does not seem like there can be such a thing, the only possible explanation would be that some verry rich people with verry big influences have retreated an extra large sum of money from the market. This people own some banks and things like this, and when banks stop to offer money everything start to go down, so the rich people become richer by buying expensive things at low prices. This is of course my own opinion and I don’t have any proof of this what so ever!