San Diego, CA (PRWEB) August 22, 2012
Tobias issued his explanation of the news that the housing market is rising in spite of the sluggish economy today, and his opinion is that this will help home sellers or an online estate agent along with anyone working for the top real estate agent websites because it is encouraging that prices are in a slight rise and that sellers will be able to find a buyer, even though other economic factors are low.
According to The Press-Enterprise, the August 2012 Economic Outlook that was recently issued by mortgage giant Fannie Mae indicates that the only bright spot of the weak economy was housing sales, which are rising even though consumer spending and other economic factors are down. This report was written by Doug Duncan, Fannie Mae’s chief economist. Among other things, Duncan mentions that housing sales will contribute to the Gross Domestic Product (GDP) for the first time since 2005. This news is tempered by the fact that housing growth will increase slowly due to strict mortgage standards and a possible influx of foreclosures that will be dumped on the market.
Fannie Mae is more correctly known as the Federal National Mortgage Association. Although it was originally sponsored by an act of the United States government during the Great Depression, it spent time as a publicly traded company before being brought under government conservatorship after the 2008 financial crisis. A recent act by the U.S. Federal Reserve means that it is highly unlikely that Fannie Mae will ever regain independent status.
Doug Duncan is a senior Vice President for Fannie Mae, who, prior to working for Fannie Mae worked with the Mortgage Bankers Association. His job is to provide statistical analyses and other data about economic factors that may affect the mortgage or housing industry. He also creates market forecasts such as the August 2012 Economic Outlook. This position means that he is considered one of the most powerful people in real estate by Businessweek.
Gross Domestic Product (GDP) refers to the value, based on current market prices, of everything that is produced within a given country. This number is measured over a certain period of time, usually a year. For general purposes, the higher the GDP, the higher a country’s standard of living. This number is also used on a per capita basis to understand the average household income. The concept of GDP was developed in 1934, during the Great Depression.
Real Estate Marketing Insider today commented on findings that although the general economic outlook is still dim, the housing market is also rising, which may help the economy in the long term.
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Real Estate Marketing Insider, based out of La Jolla, California, provides real estate professionals anywhere with tips, strategies, and analysis of market trends.