Being a Voice of Reason in Uncertain Times
Free Resource Page for Real Estate Agents
The Coronavirus (COVID-19) has caused massive global uncertainty, including a U.S. stock market correction no one could have seen coming.
While much of the news has been about the effect on various markets, let’s also acknowledge the true impact it continues to have on lives and families around the world.
With all this uncertainty, how do your clients make powerful and confident decisions in regard to their real estate plans?
Some worry this could cause concern for the U.S. housing market. The uncertainty, however, may actually mean good news for real estate. As Fleming concluded in his report:
“Amid uncertainty, the house-buying power of U.S. consumers can benefit significantly.”
When there’s fear in the world, we see lower mortgage interest rates as investors flee stocks for the safety of U.S. bonds. This connection should be considered when making real estate decisions.
According to the National Association of Home Builders (NAHB):
“The Fed’s action was expected but perhaps not to this degree and timing. And the policy change was consistent with recent declines for interest rates in the bond market. These declines should push mortgage interest rates closer to a low 3% average for the 30-year fixed rate mortgage.”
This is exactly what we’re experiencing right now as mortgage interest rates hover at the lowest levels in the history of the housing market.
There is plenty of talk in the media about a pending economic slowdown.
Many experts predict a potential recession is on the horizon. However, housing will not be the trigger, and home values will still continue to appreciate. It will not be a repeat of the crash in the 2008 housing market.
The good news is, home values actually increased in 3 of the last 5 U.S. recessions, and decreased by less than 2% in the 4th.
There are 3 questions you need to know how to answer in a Shifting Real Estate Market:
To get the answers to these questions, download the How to Succeed in a Shifting Real Estate Market eGuide.
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