It’s a bumpy ride right now in real estate. Some weeks are booming, and some weeks are quiet. Some months are record setting, and some are ho-hum. There are many factors to consider when we try to explain our market—consumer confidence is always the most important driver, and it has fallen and flattened steadily since September 2018. Rates and other things matter, too.
I pose the following for our bumpy ride analogy:
The labor market is cruising along and then BUMP; less spending and inflation sleeps. Stock markets are on a fun speedway and then BUMP; bonds tumble, trade wars loom, and global growth goes into a decline. Corporate America is driving loud muscle cars and then BUMP; the S&P 500 earnings per share fall for the first time in 3 years.
What’s the effect on our bottom line on this bumpy journey? Right now, affordability is where it’s at if you have a job! With mortgage rates at historic lows and fairly stagnant home prices, you can be a happy homeowner.