GOOD NEWS: The general consensus of industry professionals is that “People will move their money into real estate when stocks go bad.” Sellers typically like to move their money to safe, tangible assets like real estate. In times of uncertainty and volatility, consumers are more comfortable with assets they directly own.
With the uncertainty in the Chinese and European markets, forecasters are predicting a rise in real estate values in specific geographic areas. In the past, foreign investors have seen a safe haven for their cash in areas such as Vancouver, Palo Alto and New York.
GOOD NEWS: The best result of the stock market slump is that it may slow down the mortgage interest rate hikes that were predicted for the 1/2 half of 2015, which is good news for both buyers and sellers.
GRAY NEWS: However, if the people feel this downturn will continue and our economy falls into a slump, buyers may hesitate taking on a large mortgage payment. An economic downturn has a negative psychological effect on consumer confidence. When not confident, consumers keep their big spending to a minimum.
Questions on real estate in the Phoenix area? Call The Drefs Team at 623-694-0354.