Starting the New Year off on an optimistic note

As the New Year gets under way, I feel good about what it holds for all of us. I truly believe the economy is improving.

Why do I believe this?

Part of my optimism is anecdotally based. Part of it is based on some key numbers.

Last week, I called an excavator to do some work for me. This same excavator, just a year ago, was begging for work. This year he’s so busy, he can’t get to my job.

What’s keeping him so busy these days?

He’s digging 150 basements in the South Lyon and Farmington areas as the building industry in our region picks up.

It’s not just new construction that’s picking up.

Here at RE/MAX Platinum, we have a shortage of inventory in the listings department, which is a whole lot different than it was a year ago. If they’re priced right, houses are getting multiple offers, selling quickly and at prices up 4 percent over last year.

The big difference between the beginning of this year and last year in real estate is that now we can sell a house. There’s a good feeling in the market, which, coupled with some key indicators, is making me expect a better 2012.

Here are some of my predictions for the New Year:

• New home construction will start again.
Consider that we’ve sold more vacant lots in the past 60 days than we have in the last two years. It’s no wonder that my excavator can’t get to my job.

• Number of sales and sales prices will continue to rise. Most of the foreclosure issues that stalled the market last year have been resolved, and so far this year, the number of home sales has increased 3 percent, and sales prices are up 4 percent.

We are also seeing private equity firms buying real estate again.

• Lower interest rates will continue. We’ve seen how well lower interest rates have helped in improving the housing market. I don’t think we’ll see any change in that this year.

• After the general election — regardless of who is elected — a lot of the partisanship and negativity will go away.

I think that the hard times we’ve gone through has people looking at what’s best for us all in terms of the economy and jobs.

This is why, now that the New Year is under way, I am feeling optimistic.