Will the Stock Market Fall Affect Home Sales?
As of late 2015, all forecast for the housing market pointed to brisk sales, with a shortage of housing, high rents and low rates creating a competitive market in Greater Boston home sales. Recently however, economic news has been less positive in terms of the stock market and global markets. “The latest scare came in early January of this year as China's stock market crashed 7% overnight and crude oil plummeted to the lowest level in more than 12 years.
…The wave of selling has knocked the Dow down 911 points, or more than 5% so far this year. That's the worst four-day percentage loss to start a year on record, according to FactSet stats that go back to 1897. The Nasdaq, down over 6% in 2016, is off to its bleakest start since 2000.” According to CNN Money.
What does this mean for the average person loking to buy real estate in Greater Boston? Well, in the short term, not much. Most of the short term impact would more likely be felt by changes in investment on the larger real estate scale – multiple residence properties and commercial real estate.
For the typical home owner/buyer in the Greater Boston Area, the changes are just not as profound or far reaching enough to create great change. “For real estate to see a slowdown the stock market declines would have to infect the broader economy and hurt employment, consumer spending, and demand for space.” Explained John Sullivan of DLA Piper in Boston.
For now, forecasted U.S. economic growth, increases in hiring, stabilized rates and a lack of housing stock should keep the Greater Boston Area real estate market is on track for a robust Spring of home sales. So our real estate advice to the 1st time home buyer is start now, visit our website, Avenue 3 Real Estate, for all the info you'll need to get on track for the Spring Market!