Taking a look back through the events of this year, there is been numerous stories across the US, so we look at the top stories of 2007..
#5 - Dow Tops 14,000 - Hard to imagine at this time, but back in July and again as recent as October, the Dow broke above 14,000. Volatility remains in the markets.
#4 - Fed Moves - Since August 3, the Fed has been battling the worst credit crisis in nearly a decade and has moved to cut rates three times in an effort to bail out the markets and to keep the economy on track. Our opinion is they over reacted as inflation already ticked higher, but time will tell for sure.
#3 - Toy Recalls - Recall after recall came out about Chinese products that contained lead-based paint, illegal pesticides, electric shock risks, and even laced with the "date rape" drug. And most came just in tome for Halloween.
#2 - Record Oil Prices - While oil has backed off a little, we are still feeling the increased expenses in our wallets. A lot of the increase came from the falling value of the dollar, along with fears of dwindling supplies and increased demand in growing places such as China.
and the #1 story, yet again...
#1 - Housing Contagion - Mortgage defaults, increased foreclosures, failing debt across the markets. Between the US and Europe, more than $100B have been written off after downgrades occurred. Add to that, we are likely to continue to see write off into next year. The effects are spilling over into other areas of credit, including commercial paper. 2008 will likely see increased defaults in credit cards, auto loans, and more.
There you have it, no surprises as far as we can tell. What does 2008 hold? Who knows, but we can expect increased legislation of the housing industry, mortgages in particular, for good or for bad. We can also expect to see more foreclosures, credit card defaults, and basically continued write offs for the foreseeable future.
Where do I see the Florida mortgage and real estate markets in 2008?
I see a slow improvement coming as reality sets in, particularly in South Florida. I don't see a recovery per se. Many in the real estate industry, both realtors ad mortgage brokers, will be bowing out under the financial strains of staying in business and not adapting to the new marketplace. That can be good news for the consumer as most who fall out will be those you wouldn't want to work with anyway, though I am sure a few will be.
As for those who work in the industry, if you can adapt and persevere, you will be rewarded. Slowing markets do not mean your business needs to slow also, rather it can actually increase in these times. As for me and Solid Rock Mortgage Corporation, our plans are to grow in 2008 and beyond, still meeting our goal of being #1 in Broward County for mortgage planning services by 2012!
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