What Does the Debt Ceiling Debate on Capitol Hill Have To Do With the Real Estate Market?
Quite frankly, I'm tired of listening to the news of the debt ceiling and what is going to happen if we don't raise it and if we do, but only temporarily. Word is getting out now that,as a result of our elected officials being unable to compromise and remaining stuck in their ideological muck, that the United States is becoming more likely to default on it's debt obligations. It doesn't mean we will...just that we are MORE LIKELY to default. How we continue to elect politicians that do NOTHING for the BETTERMENT of our Country is beyond me?
So what will likely happen, is that our AAA credit rating as a Country is going to be downgraded. This shouldn't shock anyone. Our Country, if it were a person, would have declared bankruptcy by now. We spend more than we bring in. It can't continue. And it seems that Greece is the story we are following in the foot steps of. Did you know consumer interest rates in Greece have reached 17% since their debt crisis?
So what does all this mean to the real estate market? To Buyers and Sellers out there?
When the United States' credit rating is downgraded, the cost of our credit goes up. And that means mortgage interest rates will rise. Credit card interest rates will rise.
If you have been sitting on the fence waiting for a "sign" to tell you it's time to buy, that smoke coming from Capitol Hill is your signal. No matter how they solve the short term debt ceiling problem, to our creditors, our Country is becoming more of a risk to lend to. And that's going to roll downhill to consumer interest rates.
Chris Ann Cleland, Associate Broker- Licensed in Virginia, GRI, SFR, Northern Virginia Short Sale Specialist. Affiliated with Long & Foster, 7526 Limestone Drive, Gainesville, VA 20155. To contact Chris Ann, call 703-402-0037 or email chrisann@LNF.com. Or you can visit her website: www.nvarealestate.net.
Header photos taken by Chris Ann Cleland.
The opinions expressed in this post are those of Chris Ann Cleland, not those of Long & Foster REALTORS®.