Would the Stock Market Affect Your Home Purchase?
“Fasten your seatbelts; it’s going to be a bumpy night.” (“All About Eve”) While most people misquote this as “It’s going to be a bumpy ride,” the actual quote works better for the movie. Bette Davis delivers this with the classic style that made her one of the most loved actresses of her generation.
Well for the stock market it’s been a wild bumpy ride. I’m sure there were a few panic attacks that sent you reeling and taking a closer look at your finances. Some of us have had this dramatic up and down Wall Street swings before and we expect it… But will there be an impact on real estate, and should you worry if you’re getting ready to buy a new home? The Finance experts say NO at this point and swings should be normal.
Most financial experts saw some sort of correction coming because of the robust market over the last two years and many expected the market bounce back with a 567-point gain on a Tuesday February 12, 2018. Since then there have been more volatility in the short term concerns of inflationary pressure and rising interest rates.
Important to homebuyers, is the fact that any potential impact on real estate is expected to be nominal. Real estate professionals, and potential homebuyers and sellers do consider the market swings and have a few jitters but analysts say the effect on home prices, sales volume and lending activity will be minimal and temporary.
The potential for lower consumer confidence can have a far greater impact on the overall economy and the real estate market. Consumer confidence is a major consideration when people purchase real estate. Few people are likely to commit to a big mortgage payment if they feel that their economic future is uncertain. Job growth and overall economy has been good. Companies are increasing their job force and buying and or renting in the area. (Amazon and Google) A great sign for our future. Even the slight increase in mortgage rates has not slowed the real estate market.
Real Estate is a great asset, but provides more than an investment. The simple truth is, the American dream of owning your own home is not only alive and Well but the opportunities to make this dream a reality have never been better. Interest rates are still low hovering around 4.25%. But beyond the financial aspects of buying a home are benefits that can’t be measured or placed on a graph. You simply can’t quantify the pride someone feels from owning a home. Imagine the freedom to create your home lifestyle. But there’s more. Research from government entities, academia and nonprofit groups have discovered societal benefits of owning a home include more stable communities, greater academic achievement, higher property values, and lower crime rates. Don’t miss the opportunity the Spring Market in 2018 will be great whether buying selling investing.
Wondering What Your Home Is Worth? Or Thinking of Moving — Just call me or email
Susan Massa, CRS, ABR, SRES, Broker
Keller Williams Premier Properties
488 Springfield Ave, Summit NJ 0701
188 Elm St Westfield NJ 07090