SAN DIEGO REAL ESTATE Articles
Real Estate & the Inverted Yield Curve
By: Bob Schwartz, San Diego Real Estate Broker CRS, GRI ©2006 Broker For You All rights reserved.
The yield curve officially flipped on December 27th, when the yield on the two-year Treasury bill edged up to 4.35 percent while the yield on the ten-year Treasury bill fell to 4.34 percent.
The stock market fell sharply on December 27th because an inverted yield curve has historically been followed by a recession. Some economic gurus have publicly insisted that it won't happen this time. Others are predicting slower growth by mid-2006.
For San Diego homeowners and future San Diego homeowners, I can tell you that a weaker economy, tends to keep inflationary pressures & interest rates in check.
So, though homeownership may become more affordable thru lower interest rates, the threat of future job uncertainty/loss may continue to put downward pressure on real estate values.
ABOUT THE AUTHOR: Bob Schwartz, is a Certified Residential Specialist, CA licensed real estate broker with www.Brokerforyou.com. Bob has over 27 years of residential real estate experience, authored a number of published articles and served as an expert witness for San Diego legal firms. You can contact Bob via e-mail at brokerforyou@gmail.com or visit his highly popular San Diego real estate website at: http://www.brokerforyou.com
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