Wednesday, May 23, 2007

Local Economic/Housing Observations. 5/23/07

I just wanted to share some of my local housing/economic observations. I was out to dinner on Saturday night, and I noticed the restaurants were not nearly as full as they were last year. I thought it was a little bit strange, since eating out on Saturday night is like a religion in this area. So I started looking for some more signs of economic weakness. I called the hotel I like to stay in on the NJ shore, one that usually needs reservations in January for a summer vacation. Sure enough, they have plenty of rooms available this summer. Granted these are totally unscientific observations, but it still makes one think. Regarding the local housing market, things have not really changed dramatically. Inventory is up, but prices have basically hit a plateau. There is no more euphoria in the market, but there is no panic either. It will take a "market event" to really budge prices. Otherwise, this Chinese water torture of flat to mildy decreasing prices will continue. I am sure it's what the government wants.