Forecasting: The housing market is in uncharted waters.
The protracted economic downturn has generated a lot of uncertainty. This is because we are in uncharted waters. Employment, housing, interest rates, deficits, credit, inefficient governments and more are in flux, and the U.S., Europe, China, and the rest of the world’s economies are all intricately tied together. All have been affected and a change within one countries economy, good or bad, has an impact on the rest. Who could have predicted that the European financial situation would drive mortgage interest rates in the United States to an historical low, even as the prognosticators consensus predicted a rise in rates? The Achilles heal in economic forecasting is that it draws its conclusions from historical data. What happens when we have nothing to draw from?
For more in depth analysis of the current Orange County housing market please continue on to the full Orange County Housing Report…
Photo Credit: Rochelle, just rochelle
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