Luxury Real Estate

You might think that, in such an evolved society, with so many technological advances, weather wouldn't matter so much.  But you would be wrong.  Last winter, with storm after storm hitting our region, most people didn't work a full week until sometime in March.  Most of us just hunkered down and waited for spring, which didn't even come early after all that snow. 

This year, we've seen almost the opposite.  We had that one freak snowstorm, which seemed like some kind of Ice Age event, as opposed to the start of winter, and very little since then.  The first winter storm came on a Saturday morning, when many people did  not have to be on the roads, and it melted quickly. 

So, you may ask, how does that relate to real estate?  The harsher the winter, the slower the spring market, and vice versa.  People want their homes listed before the spring rush, but it's not always clear when that will be.  It won't be before the streets and sidewalks are cleared.  Even though a bad winter should keep people indoors, getting ready to move, it doesn't seem to work that way.  Until they can come out from under blankets--either of snow or the literal kind--they don't get their homes ready to list. 

Since this year has so far proven to be mild, we are anticipating that the spring market may come early.  I'm writing this too early to know what the groundhog is going to do later this week, but I want to get in an early warning:  Get ready before the market takes off without you, whether you are a buyer or a seller.  Be ready to go when it pops.  And that means, this year, that it's already time to begin. 

Paul Krugman just wrote in the New York Times that we may be in a "virtuous cycle" instead of a vicious cycle.  That is, he sees the economy improving, leading housing statistics to improve, leading to a further improvement in the economy.  It's about time, but it's very welcome.

We've always know that FDR was right:  The biggest thing we have to fear is fear itself.  Once people are afraid that they may lose their jobs, their benefits, or their overtime, they cut back on their expenditures, giving their employers less income and leading to cutbacks.  That's where we've been for a few years now.

Krugman makes the point that the Europeans have neglected to deal with the basic problems in their economies, whereas here we did let interest rates go down and we did let our housing bubble deflate.  That leaves the US in a position to improve now, and all the signs are there.  So that's something to cheer about, and hope that the virtuous cycle continues.