Real Estate Sales Go Up With Consumer Confidence
For years now I have been telling agents and brokers that the market is not driven by interest rates. Most look at me as though I was a nut job. Now we can see if the lower interest rates produces a boom or does little to nothing.
The Fed thinks that lower interest rates will get the housing sector going. It can't and they bet the economy on there guess.
The way to get the housing sector going is consumer confidence. The average person is not likely to come out and purchase a home if they do not believe that their jobs are secure. Oh no! That would mean that it is JOBS that will get the housing sector going.
If the home buyers, move up or move down buyers are waiting to be sure that when they commit to a long term loan they will have employment That employment must be from a job where the payment is easily within their budget. Remember many have lost their jobs, and their homes. Getting back in will not be easy.
If the home buyers have fear they will not be in the market no matter how low the interest rate.
Does that mean that no one is buying or selling? Of course not but the bent up demand will continue until we get the people employed again.
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