I know that the economy is very emotional. Often reports conflict about how we should "feel". Does is feel like inflation is creeping into your life? Other than gas and household energy prices, do you feel like your buying power is slipping no matter what you got for a raise?
Do you see a LOT more houses for sale for longer? Are your friends throttling back a bit on plans, vacations, spending, etc.? When you’re at the coffee shop, do you still hear about friends "putting together a down payment on a $600k home, only to flip it for a $150k profit by the time it’s actually built?
Is the stock market easily rattled by 1 simple report about 1 aspect of the economy? Are your funds, IRA’s , 401k’s, and other investments keeping your satisfied by providing a 10-12% return? Are you wishing you hadn’t gotten that interest only loan or massive ARM that has adjusted in lock step with the rise in gas prices creating a "double whammy"?
The economic numbers show that we’re doing "fine" as a nation…but I think that when the emotional tide turns and the pendulum swings…hold on..AND START BUYING MORE REAL ESTATE. As an investor, I’ll survive the high interest rates to live another day with a no cost refi when (if) rates drop again. However, instability and concern will keep people renting and non committal when it comes to housing, i.e. they’ll pay more rent and for longer.
I fell this disruption coming to fruition. There are just too many things dragging the citizens of the U.S. down. Thus, the economy will fulfill its emotional destiny.