Federal Reserve optimistic about housing market

Federal Reserve Chair Janet Yellen remains optimistic when it comes to our U.S. economy and says a rebound in spending and production in the housing market is already underway.
“While we have seen substantial improvements in labor market conditions and the overall economy since the financial crisis and severe recession, we recognize that more must be accomplished,” Yellen told the congressional Joint Economic Committee.
She did not sound alarmed about the lackluster growth in our economy during the initial three months of 2014. In fact, she blames the extreme weather that most of the country experienced and says the recovery should now pick up.
“With the harsh winter behind us, many recent indicators suggest that a rebound in spending and production is already underway, putting the overall economy on track for solid growth in the current quarter,” Yellen said.
Another factor in our economic growth that affects the housing market is the unemployment rate. As the unemployment rate continues to decline, experts like Yellen expect the growth rate to increase at a quick pace this year, especially when compared to 2013.
Experts are wondering when the Fed might start to raise short-term interest rates. Those rates have been held near zero since late 2008. Yellen responded by saying there is no mechanical formula timetable being considered right now.

If you’re considering selling your luxury home in Santa Barbara or its surrounding areas such as Montecito or Hope Ranch, now is the perfect time to act with the Feds remaining optimistic about the housing market. Check out the new listings on my website to get an idea of what’s going on in the market right now. Then give me a call at 805.886.9378 or email me at Cristal@montecito-estate.com to discuss your needs.