Bernanke reports, “The housing sector typically plays an important role in economic recoveries; the depressed state of housing in the United States is a big reason that the current recovery is less vigorous than we would like.”

Overall, economic growth in the U.S. is much slower than expected. Although there have been recent setbacks in the number of jobs added to the market, there has been marked progress from the low of the recession.

“The U.S. economy is recovering from both the worst financial crisis and the most severe housing bust since the Great Depression, and it faces additional headwinds ranging from the effects of the Japanese disaster to global pressures in commodity markets,” Bernanke says. “In this context, monetary policy cannot be a panacea. Still, the Federal Reserve‘s actions in recent years have doubtless helped stabilize the financial system, ease credit and financial conditions, guard against deflation, and promote economic recovery. All of this has been accomplished … at no net cost to the federal budget or to the U.S. taxpayer.”

According to John Cassidy, a contributor to Fortune magazine, there are five key bright spots to the market, followed by their negative counterpart. First, corporate profits are surging, but no one is hiring. Second, homes are affordable even though few people are buying. Third, the stock market continues to rally, but few feel richer. Fourth, household wealth is up, while finances are fragile. And finally, manufacturing has recovered, but this may not last.

It’s a mixed bag across all economic sectors. Housing is not the only market to be struggling to recover. Small improvements are being made across many areas, and hopefully this trend with spread to harder hit areas of the nation.

This month (June) marks the 40th year I’ve been writing this
column on real estate news and trends. It’s been quite a ride,
observing and reporting on the constantly evolving real estate and
mortgage markets over the years.

To put that time frame in perspective, the average price of
homes was $25,250 in 1971 (40 years ago). The average cost of a
gallon of gasoline was 35 cents, while a gallon of milk was $1.32.
The average movie ticket cost $1.65. For a 30-year fixed-rate loan,
mortgage interest rates ranged from 7.3 percent to 7.7 percent –
substantially higher than today’s rate.

In 1971, multiple listing services (MLSs) were evolving from
printing and distributing individual data sheets or cards on newly
listed properties to computerized printed books carrying photos and
data on all current listings within the MLS jurisdiction. This was
the birth of the digital age with the invention of the
microprocessor.

Soon thereafter, information on listed properties appeared on
real estate websites almost immediately after the listing was
processed. The real estate industry was transformed by computer
technology.

Even the language of real estate has changed dramatically over
the years. During the early 1970s, the term “condominium” was still
unfamiliar to many readers, and I had to explain the concept.
Today, the term “condo” is as familiar as house.

Even today, confusing new terms are being added to our real
estate vocabulary. Many people are unsure about the meaning of such
terms as “short sale,” “underwater,” “mortgage cram-down” and
“strategic foreclosure.”

We are now recovering from the worst recession since the Great
Depression of the 1930s. Home values have dropped ominously.
Mortgage financing is available at historic low rates, but they are
more difficult to obtain. However, things are improving week by
week, as they always do after a tough time period.

The investment in a home continues to be a wise and prudent step
for today’s families, as it was long before I started writing my
column 40 years ago.

Q: Has any study offered an insight on the effect of a family’s
residence on the welfare of kids?

A: The family home has a powerful impact on kids’ health and
general well-being, it was revealed in a recent study.

Researchers have uncovered more evidence of the important role
that well-designed affordable housing plays in supporting positive
health and educational outcomes, particularly relating to children.
The Center for Housing Policy, the research affiliate of the
National Housing Conference, released two literature reviews on the
connections between housing and health and housing and
education.

The direct effects of poor quality or unsafe housing on health
are well established. Researchers have also increasingly turned
significant attention to the role of housing affordability in
fostering stability and reducing stress.

In a brief titled “The Impacts of Affordable Housing on Health,”
it was detailed how the results of research on the pathways through
which affordable housing can affect the health of residents,
especially children.

Q: Are newly constructed home sales rising?

A: Sales of newly built, single-family homes rose 7.3 percent to
a seasonally adjusted annual rate of 323,000 units in April, their
best pace since December of 2010, according to figures released by
the U.S. Commerce Department. The report also showed that the
nationwide inventory of new homes for sale continued to fall to
just 175,000 units in April, which is a new record low.

“The fact that new-home sales have now risen for two consecutive
months is certainly welcome news following an all-time low sales
number in February,” said Bob Nielsen, chairman of the National
Association of Home Builders. “That said, builders are still
contending with a great deal of competition from foreclosed
properties for sale in certain markets. And in places where this is
not an issue, it remains extremely difficult to obtain credit to
build new homes.”

Q: Are home prices still dropping?

A: Home prices hit another new low in the first quarter — down
5.1 percent from a year ago to levels not reached since 2002, it
was reported by CNN Money. It was the third straight quarterly drop
for the SP/Case-Shiller national home price index. Prices are
now down 32.7 percent from their peak set five years ago.

Q: Are mortgage rates rising or falling?

A: The overall average rate for 30-year fixed-rate mortgages
slipped back by two more basis points (0.02 percent) during the
last week of May, landing at an average of 4.88 percent — a fresh
2011 low, according to HSH Market Trends. FHA-backed 30-year
fixed-rate mortgages are arguably driving whatever sales of homes
to first-time homebuyers are occurring. And they also give
low-equity refinancers an option to pursue, the report noted.

SAN FRANCISCO, CA–(Marketwire – Jun 8, 2011) – Shelley Egger, who has 25 years of sales, marketing, and business management experience with Fortune 500 companies, is the newest addition to the McGuire sales team in the East Bay.

Once she acquired her real estate license, Shelley went to work for Prudential California Realty on Piedmont Avenue. She comes to McGuire’s Rockridge office, located at 5327 College Ave. in Oakland, Calif., with a consistently high quality of work performance and a positive, can-do attitude.

Shelley received her MBA in Marketing from Ohio State University and has resided in the East Bay since 1988. She and her husband, along with their two children and Golden Retriever named Joey, have had the pleasure of living in Piedmont, Oakland, Montclair, as well as El Cerrito.

Running her own consulting business for many years, Shelley has designed and implemented client-specific training curriculums for retail, healthcare, financial, and professional seminar development services. Her clients greatly appreciate her vast knowledge of local schools, recreational facilities — including her favorite dog parks — various modes of transportation, cultural activities, and shopping districts, when looking to purchase their next home. Shelley is an agent who will work diligently to show her listings at their full potential, and has a talent for strategically pricing properties.

Her use of information technology, leveraging its power to drive results, has continuously increased her sales volume over the years. It’s also provided her with a proven track record of success. Shelley’s exceptional analytical, written, and verbal communications skills ensure that her clients’ expectations are not only met in a timely manner, but also exceeded. A relationship builder with exceptional interpersonal and communication skills, Shelley has effectively managed and mobilized resource teams to high performance standards throughout her career.

She values passion, integrity, and results, all of which drive her efforts as a REALTOR®. Shelley is a member of the National, California, and Berkeley Association of REALTORS®.

ABOUT MCGUIRE REAL ESTATE
McGuire Real Estate has been an integral part of the San Francisco Bay Area real estate scene for over 90 years. A mid-sized, regional boutique, we specialize in luxury real estate, but apply the highest standards of service to properties in every price range and to every client. Our customer first philosophy and local focus has proved to be a winning formula as a Bay Area real estate leader. McGuire’s affiliation with Luxury Portfolio successfully connects our clients and agents to a worldwide marketplace. McGuire operates two offices in San Francisco, one in Marin County, one serving the Peninsula in Burlingame, and two in the East Bay.

To learn more about McGuire Real Estate, contact us at clientcare@mcguire.com, 800-4-RESULTS, or visit www.mcguire.com.