Out of the woods now? We don’t think so…
The government reported Thursday that the economy shrunk at a revised 1% during the second quarter and estimated that government stimulus spending added 1% to economic growth. In other words, without stimulus the economy is currently shrinking at a rate of 2%. Normally such a rate would be considered terrible.
Our belief remains that the uptick in economic activity and the real estate market will be short lived. Near term home sellers in the Palo Alto/Los Altos market area should sell now; buyers should buy quality, lock in low loan rates, and plan to hold long term.
Jeff and Steve