3 Things To Know About Today's Housing Market!

As you know, there is chaos in our world today. Whether it's a badly needed orchestrated change or unchecked pandemonium is the topic for someone else's blog. But you can't deny it exists. And it is having a direct impact on the housing market. The reality is:
some of it is positive and some of it may be negative.

Here are three areas of the housing market that are critical for you to understand: interest rates, building materials and the outlook for an economic slowdown.

1. Interest Rates

Without argument, one of the most important things to consider when buying a home is the interest rate you will be charged to borrow your money. In a recent blog of mine, I explored the questions, "Mortgage Rates: How Low Will They Go?" The latest information from Freddie Mac seems to say lower rates are here to stay for the near future. We are currently at a 21 month low in interest rates. 

2. Building Materials

The reality of tariffs and the threat of more to come also affect the housing market. According to a recent article, the National Association of Home Builders reports that as much as $10 billion in goods imported from China are used in American homebuilding. Depending on the outcome of the tariffs and trade discussions between several countries, there could be as much as a 25% boost in the cost of building materials. 

3. Economic Slowdown

Many so-called experts have a been trying to predict when we will have our next recession. It's logical to have the mindset that we will eventually have a marked slowdown. But as a mentioned in a previous blog, this market is in no danger of crashing like it did back in 2008. But many leaders were thinking we could expect a recession in late 2019 or early 2020. And then as spring approached this year, economists had started to push that projection past 2020. Now, three leading surveys indicate that it could begin in the next eighteen months. 

Bottom Line

Interest rates, the cost of building materials and the possibility of a economic slowdown can affect your ability to buy a home. These three areas can also affect your ability to sell your home. 

Scott's Advice

It is a complete waste of time and energy to worry about things you can't control. But with this information you CAN make a better real estate decision. Analyze your needs. Make a plan. Execute that plan. It's that easy. And a trusted real estate profession should be part of your planning.

Please allow me to help you make it easy.

Scott C. Dickinson is a real estate broker who lives in beautiful Vancouver, WA but helps others  with their real estate needs all over the US. He can be reached by email at ScottYourBroker@gmail.com or call him at 360-518-7197. Check him out online at 

linktr.ee/yourbrokerscott.