Thanks to the economy, advances in credit scoring, and the Community Reinvestment Act, the rate of homebuying by low- and moderate-income households is shattering the record books. But with economists talking about an eventual slowdown in growth, there’s concern that some of these new homeowners may be in over their heads.
The latest Census Bureau data helps put into focus all the disparate facts and figures we read about on the housing market. Here are a few especially informative figures from the third quarter of 1999.
The stock market today has swollen to $14 trillion dollars, double what it was five years ago. With the market at this height, analysts aren’t ruling out a "correction"--a major drop in the value of the stock market. So would real estate be hurt if the stock market were to take a nosedive?
From Nov. 30 to Dec. 3, delegates from the 134 member countries of the World Trade Organization will be meeting in Seattle to launch the “Millennium Round” of trade talks. Although many REALTORS® may not realize it, the stakes are high for real estate.
The U.S. economy is setting a record in 1999 that most people would prefer to avoid. The amount of taxes paid by individuals in relation to the economy will exceed that paid in every year of the 20th century except 1944, the peak year of World War II taxation.
Busting the budget caps would send a signal to the financial markets that Congress isn’t serious about fiscal discipline. That would send bond prices dropping and interest rates rising. Real estate activity would be choked off.
Learn what James F. Smith, the new chief economist for the NATIONAL ASSOCIATION OF REALTORS®, is saying. As one of the country’s most accurate economic forecasters, Smith doesn’t have to fight for the ear of the country’s top policy makers and opinion leaders. He has it.
Low interest rates are here to stay. That will sustain the real estate sector, which will in turn keep the economy growing. Lower rates will increase the demand for housing and make commercial deals more attractive. Yet, there are still worries.