Happy New Year!

by Admin on January 11, 2011

I wanted to wish all my friends, family, colleagues and clients a Happy New Year. I am very optimistic for 2011. Some might think that I’m being a little too optimistic, but what the heck, the worst is over isn’t it? The economy we live in today is based a lot on psychology. If the perception is good, then money starts to flow as corporations and individuals stop sitting on their cash and start putting it back into the market. I think you will definitely start to see this in 2011. Corporations have to satisfy their shareholders, and shareholders don’t like cash sitting in accounts achieving nearly zero in interest. Corporations will either have to start investing the cash in projects, hiring, or paying out larger dividends. With an increase in hiring and dividends, this means more consumer confidence. We already saw this during the Holiday Season with retail sales the best since 2007. To get a more detailed account of the possible influx of cash into the markets, please read the article from the Wall Street Journal in December here. What does this mean for the local San Diego and international markets that Atlas International represents? I feel that a buyers’ market will exist throughout 2011. Prices will continue to stabilize. I explained in a previous blog post that I felt prices could contract 5% to 8% in San Diego County. Maybe it won’t? It still depends on how the market absorbs the distressed sales (foreclosures/short sales). As for International, it depends on the area. In places like Belize, appointments to view properties with our agents were up two hundred percent versus the end of December 2009. I have spoken with many of my clients that have survived the recession. The overwhelming consensus for those in a position to buy, feel that 2011 will be an appropriate time to purchase. All the best to you and your loved ones! Happy New Year J. Rob Handley

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