The wild stock market of the past week has sent some into a panic and caused many others to take a closer look at their financial picture. But what is the stock market's impact on real estate, and should you worry if you're getting ready to buy a new home? Not much at this point, and not really, say financial experts.
So why isn't a 1,175-point drop - the largest single-day dip in history - not a concern? First, because most financial experts saw some sort of correction coming because of the robust market over the last two years (and, as many expected, the market bounced back with a 567-point gain on Tuesday, although there could be more volatility in the short term).
"The stock market has been on a roller-coaster ride since late last week, with a historic one-day plunge in trading, and a ripple effect that struck the rest of the globe Tuesday," said Inman. "But most economists will tell you the historic highs over the past two years were bound to result in a correction of sorts as investors reckon with the possibility of inflation and rising interest rates."
Second, and most 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 aren't immune to the fears that reverberated across trading floors on Friday and again on Monday, they said, "but analysts say the effect on home prices, sales volume and lending activity will be minimal and temporary."
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