Fritz Pfister

The economic news this week continued to paint a picture of a slowdown. Consumers are pulling back on spending due to the loss of disposable income to everyday necessities of gas and food. When consumers spend less, demand for products falls, and producers produce less. When you produce less, you don’t need as many employees. This has resulted in the unemployment rate increasing to 6.4% in Illinois.

Consumer spending is the engine that drives the economy. Who’s spending now? This a vast and wealthy economy, and society. There’s money to be spent, however many are taking a wait and see approach. The evaporation of disposable income for the majority of families isn’t making them want to rush out and buy something. I believe budgeting has just become very important again. When spending slows, so goes the economy. Kind of a viscous cycle.

The local housing market is reflecting the slowdown. I will be monitoring the end of month sales with a great deal of interest for you. With one week remaining in June closed home sales are off by 20.3%, and sales pending are off 21.8% from last June.

At the current pace of sales this looks to be the slowest second quarter and first half of year this decade. The second quarter typically has the most home sales during a year, followed by the third quarter as second best. The third quarter hasn’t seen more home sales than the second quarter since 2000. Here’s hoping that the third quarter does it again in 2008.

The slowdown in sales isn’t exactly what the 1974 home owners with houses for sale want to hear, but they’d better be listening. That’s more homes for sale than will sell in the first half of the year.

Do home sellers have to give their homes away in order to sell? No, but you’d better be priced better than your competition.

Do home sellers have to make their homes like new in order to sell? No. Just in better condition than their competition.

Do home sellers have to hire the best agent to get sold? No. Just one better than their competitors hired.

It’s like the fellow who was slowly reaching for his shoes while camping with a friend when they spotted a bear coming toward their campground. His friend says you can’t out run a bear! He replied; I don’t have to out run the bear, just you.

Make it a great week from Fritz and Kristie Pfister and the Pfister Success Team of RE/MAX Professionals. Helping more families out run the bears than anyone since 2000. Call Fritz at 217-652-7653.