Can These 3 Things Really Derail our Home Market?
You might have been reading or hearing all sorts of conflicting news about our market. Prices are up, prices are down, inventory is up, foreclosures are down… Trali wali, trali wali as some say in Eastern Europe.
Forgive the media, they generalize too much and often pick the more negative side of the story. Then they lick that bone like a golden retriever after a day’s out in the field.
The word is out that there are 3 monkey wrenches that may derail our slowly recovering real estate market.
First, the expiring homebuyer’s tax credit. It’s been credited with getting a lot of buyers into the market that wouldn’t have been there otherwise. It goes bye bye in spring.
Second, foreclosures. They continue to rise because many homeowners in financial distress are simply making the decision to walk away from their homes. Sometimes getting rid of debt can be as easy as that.
Third wrench is the low interest rates are taking a train to Canada as well. They’re low now in large part due to Federal Reserve purchases of mortgage-backed securities. Those purchases are due to stop near the end of March. This move will likely cause interest rates to turn upward.
So what do you think? Is it possible that these three factors coming together at roughly the same time could create a perfect storm and throw our fragile real estate market into (more…)







