Tremendous spikes in real estate have been largely attributed to foreign investors and what has been described as “low inentory marketplace”. Though both are partially true contributors to what most would describe as a “healthy marketplace”, news of continuously improving US economy have been the driving force for the investors and the individual home buyers, as their confidence continues to rise. Thogh with some new construction coming to market have been swaying the attention of the investors, personal home buyers have been filling the gap occasionally left by a hesitating investor.
Let’s look at the numbers from the beginning of this year:
National Unemployment Rates 2014
| Jan | Feb | Mar | April | May | June | July | Aug | Sep | ||||
| 6.6 | 6.7 | 6.7 | 6.3 | 6.3 | 6.1 | 6.2 | 6.1 | 5.9 |
Almost regardless of what the last quarter numbers will be, 2014 has already been establised as the best year in US economy since 2008, with real estate values topping what was once considered the top of the “bubble”. Yet with holidays ahead, I am almost certain that consumer spending will be at a 5 year high, and we will see bull trends in the stock market. All of this can only be eclipsed by an announcement by the Feds that they are completely pulling out of the Mortgage sector and turning it over to the private isntitutions. This will not mean an immediate spike in interest rates, but in my opinion institutional investors will feel the need to protect their postitions and we may see a major sell-off on Wall Street.
This entire post is my real-time, unedited stream of thought, which this humble New York Broker is happy to sheare with the universe.
By: Armen Meschian
Licensed Associate Real Estate Broker at CORE