Glenn Musto | Thursday, October 6, 2016. Does it feel to you that the economy has improved rapidly over the past 8 years?
Wage growth is virtually nonexistent.
Meanwhile, the housing market is very strong. New home sales recently hit their highest level since 2008. Too many of us recall 2008 and 2009 as the years that the housing market, Wall Street, and the entire U.S. economy collapsed.
Housing starts and the stock market are both leading indicators of economic activity. Our U.S. housing and stock markets are related in several ways. For example, company shares of major home builders are traded in the stock market. Home- improvement companies also trade on the stock exchange, and profits of such companies depend upon
Prior to 2015, sales of homes priced at $1,000,000 or more averaged about 1.2 percent of all home sales. The spread between high-end sales and the equities market widened during the housing bubble that burst in
Consumer confidence plays a huge role about when to purchase real estate. How many people are willing to commit to a large mortgage when their economic future is in doubt? When the stock market declines and the portfolio values shrink, prospective home buyers’ confidence is shaken. These feelings often spread like wildfire, affecting not only those who have been hurt
As we enter the closing months of 2016, the stock market will remain a significant influence as regards the strength of luxury home sales. Should the stock market stall or decline significantly, high-end luxury home sales will almost certainly slow. If the market continues to advance, the luxury home high-end market can be expected to remain strong and continue to grow.
It’s common knowledge that recessions are typically caused by a collapse of artificial demand and unrealistic pricing somewhere in the financial system. Such an excessive or inflated level of demand doesn’t seem to exist in the current housing market across the nation. In fact, a few areas of the country are still struggling to recover from the depths of their 2008 housing collapse.
The huge pullback in oil prices held home prices down in some markets as well. If the recent recovery persists in our energy markets, home prices and sales in places like Texas, Louisiana and North Dakota should definitely improve as well.
Even If the Federal Reserve raises interest rates, doing so could motivate prospective home buyers to act before mortgage rates increase greatly.
All in all, it appears that even if a correction occurs in the stock market, the U.S. housing market is positioned to remain quite favorable into the near future. Demand is strong and inventory is low. These two factors remain as the most reliable indicators of a continuing seller’s market.
We are fortunate in our Pinellas area of Florida to have homes of all types available, in many different areas and many price ranges. Buyer demand is currently quite strong in Clearwater Beach, Sand Key, Belleair and Belleair Shore, Indian Rocks Beach, Indian Shores, North Redington Beach, Redington Beach, Madeira Beach, Treasure Island, St Pete Beach, Pass-a-Grille, Tierra Verde, and St Petersburg, FL. While more condominium units are generally available, we still have an enviable selection of single-family homes in our beach areas.
Team Musto specializes in finding the perfect buyer and/or perfect home for our clients. For homeowners who may be thinking about moving up, or downsizing to insure a secure retirement, we have qualified buyers waiting to buy your home.
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Call Team Musto now at (813) 610-4684 and start packing!