Fed Chairman Makes Friday a Happy Day!

Never one to end the week on a down note, we are happy to present some POSITIVE pieces of information regarding the national economy and the local economy.

National Front: In a speech to the Federal Reserve Bank of Kansas City's Annual Economic Symposium, Ben Bernanke, Chairman of the Federal Reserve, said

"After contracting sharply over the past year, economic activity appears to be leveling out, both in the United States and abroad, and the prospects for a return to growth in the near term appear good".

The Fed Chairman's statement and outlook come on the same day that the National Board of Realtors released its survey of existing home sales, showing a fourth consecutive month of growth, and the first increase in year-over-year existing home sales since 2005. (To read a complete article on this subject in the New York Times click HERE).

Local Front: Home sales information from the Bay Area mirrors the national trend, with the Bay Area showing a 20.4% increase in the number of sales between June of 2008 and June of 2009:

Click above for Source Document: MDA DataQuick Information Systems, www.DQNews.com

This confirms a conversation I had just this morning with a leading East Bay residential realtor, who told me she has "been busy all summer". She went onto say that loans are "flowing back into the market for solid credit buyers" (20% down payment, verifiable income).