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Are we in a recovery or not? You know, you can get ten economists in a room together and get ten different answers as to how the economy is doing.
But it seems like the roomful of economists are starting to come together and agree that we are bottoming out and coming out of the recession. The stock market has recovered 54% of its value from it’s low point and lower price homes are getting multiple offers.
According to the OCRegister, Kerry Vandell, head of UC Irvine’s Center for Real Estate stated that “The economy is recovering more rapidly than I would have guessed”
He went on to state that the residential market has began to recover but, there are some obstacles still in recovery’s path which he said are the following:
Massive wave of foreclosures is yet to come.
Banks are delaying “taking the hit” on those devalued properties.
Credit is still very tight.
Unemployment is still increasing.
State spending cuts will offset federal stimulus in California.
Prices and rents are still high.
So there you have it, we are recovering according to Kerry Vandell, but we’re not quite out of the woods yet. What do you think, are we recovering or not?