Economic Outlook

Even though we had big "shocks" to our economy in 2005, the nation's economy was, and is, in a prosperity mode! The inflation rate is projected to be even lower this year than last; the gross domestic product should move up; the unemployment rate should drop even lower; and the 30 year fixed rates, although six-tenths of a percent higher than last year, are still very low.

The explosion of home sales during last year has leveled off some, but the projection is for 6.9 million existing homes to be sold this year. Even if that's a bit fewer than last year, it's still a banner year! What it means for buyers is that the choices they have will increase, and the price they have to pay won't increase as much. For sellers, they may have to wait a little longer for a buyer to make an offer, and they may not be able to expect as much of an increase in the value of their homes as they enjoyed last year.

Housing affordability will still be a serious problem in places like California and Florida and Connecticut and New York, but not here in Tyler, Texas. Come see us!