Blog

Real Estate Providing Positive Stimulus

July 1st, 2012 | real estate, puchase, refinance

Data on real estate sales and construction to be released shortly should be very interesting.

For the first time in a long time, real estate is not a drag on the economy. On the contrary, for the first time in years real estate is in a position to provide stimulus to the economy in the shadow of this current slow patch. Thus far this year the real estate market is growing approximately ten percent year-over-year. We need this continuous growth to lift the real estate market out of its long term slump and to start pulling its own weight within the economy.

When people purchase homes, they contract with moving companies, purchase furniture and undertake renovations. Millions of Americans are also refinancing and this should provide further stimulus as payments are lowered and this frees up money to increase consumer spending. However, a high percentage of these refinances are actually going toward shortening the terms of the loans. This trend is great for the long-term health of the economy as Americans pay down debt and increase the equity in their homes, yet it lowers economic stimulation in the short-term.

Source: David Hershman,The Hershman Group

Kings Mortgage Services Inc.

Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act - NMLS 264441

Thank you for your interest in our company. Please select from any of the following ways to contact us.

 

HANFORD
1507 N. 11th Ave.
Hanford, CA 93230
Phone: 559-585-7400
Fax: 559-585-7404
VISALIA
3700 W Mineral King
Visalia CA 93291
Phone: 559-713-1064
Fax: 559-713-1065
SELMA
2020 High St., Suite A
Selma, CA, 93662
Phone: 559-318-9931
Fax: 559-318-9934
FRESNO
685 W. Alluvial #105 Fresno, CA 93711
Phone: 559-432-5100
Fax: 559-432-2796
ARROYO GRANDE
136 W. Branch St.
Arroyo Grande, CA 93420
Phone: 805-904-6991
Fax: 805-904-6999
CORPORATE OFFICE
4244 W. Mineral King Avenue
Visalia, California 93291
Phone: 559-713-1200
Fax: 559-713-1275