The American economy, by its very nature, changes regularly. Good and bad economic news, as well as projections and predictions, are broadcast and reported daily by the nation's media.

In October 2006, the National Association of Realtors (NAR) issued a press release stating that home sales appeared to be bottoming out, with lower home prices attracting buyers in many areas of the country. According to David Lereah, NAR's chief economist, the housing market was showing signs of new life and that sales may be leveling out. “Many potential home buyers who have been taking a wait-and-see attitude or taking their time and being methodical in the search process are being enticed by lower home prices,” Lereah said. “Given a positive economic backdrop of lower interest rates and job creation, we expect sales activity to pick up early next year.”

The thirty-year fixed-rate mortgage was averaging about 6.5 percent in the fourth quarter of 2006. Coupled with an unemployment rate of about 4.8 percent and an inflation rate measured at 3.4 percent based on the Consumer Price Index, and the economic outlook was good. Personal income was likely to grow 3.4 percent for 2006.

Of course, this was 2006. The economy can change directions, and when it does, local real-estate markets move in different directions. Factors such as unemployment, interest rates, stock market indexes, inflation, and world news can influence the current economy.