This being the worst month in regards to a sales drop in United States history, retailers are saying they are not surprised. In November the sales decrease totaled an $11 billion dollar loss, a huge hit for the economy, which is only making matters worse. Retailers said that they won’t be surprised to see things get worse before they start to get better.

Most retailers see about 50 percent of their sales revenues from the holiday period of October through December. With the way sales are dropping, especially during this crucial holiday time, it is having a worse effect on the economic state then the sales generated through out the rest of the year.

There is really no way to look at the figures and put it in a positive light. The sales drop is worsening the economy for retailers. Although the January through November sales showed some promise, especially when the car and car parts were taken off, it is still not good enough to bring the outlook up.

The worst part is, even with this economic downward spiral, continued rising prices should be expected. Gasoline may be going down, but they still are making profits, especially with the way prices looked a month ago. Even with the decrease in gas prices, more needs to be done to help our economy begin to stabalize.

When you take the statistics for holiday retail and combine it with the most recent job loss numbers this directly effects the Denver Housing market in a negative way.

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U.S. Retail Sales Fall Again

So what does this mean for Bonds and home loan rates? We first have to acknowledge that we are not in a typical trading environment, where weak or negative economic reports always lead to improved pricing for home loans and vice versa. The dynamics of hedge funds de-levering – where fund managers are selling all types of securities with whatever timing they need to, in order to raise capital – have caused unprecedented volatility of late, and it is not quite clear when that will end.

The Fed has indicated that they would like to be a buyer of Mortgage Bonds, which has resulted in attractive, lower rates right now. But as stated above, the trading environment is extremely volatile, and opportunities to capitalize on lower rates that make sense should be taken advantage of. There have been recent rumors of interest rates being brought down towards 4.5% by the Treasury. This irresponsible release included no definitive plan, no indication of who might qualify, or what the restrictions would be. Like many other recent legislative “solutions”, the restrictions might be very tight, with income limits set very low, and as a result, helping very few people. Remember, it may make sense for you to act now, and take advantage of current historically low rates…with the possibility of refinancing should rates decline further.

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Job Loss Report for November

The economy is failing and the sky is falling, or so the experts want you to believe. Watching the news you might think that there is no chance to make any money in the market today and investing in real estate is going to be a loser’s game no matter where you end up. This isn’t exactly accurate, though. What the experts don’t tell you is that economic problems are usually more local than anything else. While one area might be struggling to make it, another could have a particularly sunny outlook.

The popular comedy Old School referred to Denver as “The Sunshine State” and there may be some truth to that if we’re talking real estate values. Though no one will confuse the crisp Denver temperatures for those in Florida, one might say that the sun shines bright on Denver real estate values. The current prospectus is looking good in spite of the economic downtown that the rest of the country is currently facing.

While other areas might be considered a “no buy” in real estate terms, you can invest freely in Denver without much worry. Things seem to be getting better in both the metro area and in the surrounding suburbs. More and more young people are moving to the area as businesses are creating jobs for qualified applicants. If you have been looking for a safe haven in terms of investing in real estate, Denver might just be the place. Both the long term and short term outlook for the city is strong and there is a lot there to draw more and more individuals in.

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The Economy and the Denver Real Estate Market

The condition of the national economy is dismal. In fact, it’s about the worst any of us alive have seen, except those octogenarians who lived through the Great Depression as children. Fortunately, we have tools now that those before us did not. We live in an instant world, and the condition of the national economy can change with lightening speed. Consumers contribute a great deal to the condition of the national economy by their confidence in it, and with breaking news reports, computers sending out RSS feeds, technology allows us to reach consumers instantaneously with good and bad reports on how the economy is faring. Based on news reports, people make their own decisions on the condition of the national economy, and if they hear good news, they are more likely to spend, which is the best way to shore up the economy right now.

Unfortunately, the news has been bad for months and months. But that’s changing. The election is over, and the new administration is announcing their plans for an economic recovery, and the stock market appears to have stabilized, so the condition of the national economy may improve shortly. This is good news. More good news is coming from the real estate market in cities where housing is in crisis. There are reports that foreclosures and short sales that are finally selling, with lenders entertaining multiple offers on homes. Now that’s very good news. Once housing starts to recover, so will the rest of the economy.

For more information regarding the local Denver economy and how it effects the Denver real estate market visit www.UrbanSynergyRealty.com

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Outlook on this Dismal Economy