Has The Economy Started to Rebound?

Has the frightening spiral that began in September of 2008 finally stopped, and are we showing signs of a turnaround? The turnaround has been described as a big ocean liner, that can not physically make a sharp turn, but turns in a big wide arc, and we are somewhere on that arc.

Many economists, the majority, have stated that the recession we are in will be over toward the end of 2009, and that we should expect to see growth beginning winter, 2010. 

One area where we do see change already is in the real estate market. A report that came out June 16,2009 shows new signs the economy is actually stabilizing. Nationwide, the building of new homes and apartments increased 17.2% and building permits rose 4%. These are not huge increases, but I think everyone should be encouraged that things are definitely improving.

In some markets things are improving at significant rates. The Southwest Florida market, which includes Naples is showing a remarkable recovery. The Naples area is enjoying its best year since 2005. Here are a few numbers that show a significant change in sales and pending sales. May, 2009 sales units are up 16% over May, 2008. Year to date May, 2009 closed units are up 21% over YTD from May, 2008. Although median sale prices are down, this is what is driving sales and pending sales, and lowering inventory. As inventory lowers prices will go up. Pending sale units for May this year are up 43% from the same period last year, and YTD are up 69% over the same period last year. There has been an 11% decrease of inventory since last year.

The Naples area was one of the first to get hit with the real estate slow down, so it makes sense it would be the first to come back. Another area that was hit at the beginning was the mountain resort, home and land purchasing market in North Carolina, Georgia and Tennessee. This market is primed and ready to come back strong. Many builders and developers have taken this time to get their communities in shape, models built and are ready for the turnaround. 

One such community is The Ridges at Tellico Lake, a private gated community located at the foothills of the Great Smoky Mountains in eastern Tennessee. Their infrastructure is in and they have built and furnished two gorgeous models ready for viewing and purchase. 

There are some areas and cities of the country that will take a very long time to recover, but even some of those have shown signs of life. Even in Detroit which has suffered greatly, is finding many investors coming in and purchasing homes, 10 or 15 at a time.

The destinations such as Naples or a beautiful mountain property such as The Ridges at Tellico Lake should be the quickest to turn around because these locations are in such high demand. 

Beach and Mountain properties tend not to rely on the same economic measure as other areas.

For more information about The Ridges at Tellico Lake please visit www.theridgesattellicolake.com or call 1-877-Tenn-A-See (836-6273).