What conceivable relevance could the Ides of March to the Real Estate Industry and the US Economy?
Let’s begin with a brief History lesson from WIKI
“The Ides of March (Latin: Idus Martii or Idus Martiae) is a day on the Roman calendar that corresponds to 15 March. It was marked by several religious observances, and became notorious as the date of theassassination of Julius Caesar in 44 BC. The death of Caesar made the Ides of March a turning point in Roman history, as one of the events that marked the transition from the historical period known as theRoman Republic to the Roman Empire.“
It just so happens that the “Capital Economics analysts predict that the Fed will start raising rates in March 2015.” as reported here:
For the past several years, the Fed has maintained this stimulus as an artificial suppression of the interest rates in order to give the fledgling economy time to spool up following the economic mayhem that ensued @ 6 years ago.
According to this article, the gig is up in March of 2015 making it a near certainty that rates will begin to rise.
This is not intended to alarm folks unnecessarily because I have yet to see an Expert prophesy doom and gloom catastrophic rate increases, although It would behoove all of us to take note and prepare ourselves beginning NOW for whatever happens.
For the average Home Buyer, this Spring has potential to be painful. We expect Housing prices in Middle Tennessee to remain level between now and the Spring (Neither increase nor decrease) primarily because the overall activity level has tapered significantly – Fewer Buyers are actively looking because there is less inventory to see. Many Sellers are also standing on the sidelines to wait for the Spring market in hopes of taking advantage of the appreciating market then.
Both of those rationales are flawed when we consider the probable truth that rates will rise AND prices will rise thereby creating a “Double Whammy” as the “Buying Power” of the Buyer’s money decreases exponentially . . . They simply will not be able to buy “as much house” then as they can now. This affects Sellers because fewer Buyers will financially qualify.
So . . . March 2015 DOES potential mark an “Ides of March Turning Point” for the real estate industry and the US economy.
The next article I read was the icing on the cake:
- Cannot afford the purchase or upkeep of a home
- Not good enough credit for a mortgage
- Not a good time economically to buy a home
- Cheaper per month to rent than to buy
- Don’t want to be concerned with doing the upkeep
- Don’t plan to be in a certain area for an extended period of time
- Rather use the money for other investments than a home
- Process of buying a home seems too complicated
- Purchasing a home limits flexibility in future choices
- Can live in better neighborhood by renting
Given all of the above information about rates and pricing increasing, these “10 Reasons” really are reasons NOT to keep renting and to BUY NOW while the gettin’ is good.
So . . . What to do about all of this?
We cannot stop or influence the economic process, so our best course of action is to shift our way of thinking and strategize an approach that optimizes the way things are NOW such that we’ll be better prepared for whatever happens in the next 5 months.
Any way I slice it, I think it all points to a need for more Houses for sale NOW . . . This would indubitably awaken many of those slumbering Buyers to take action NOW to avoid the inevitable decrease in the buying power of their money after March 2015.
If you live in a house or condominium that you have EVER considered selling, that tells me that you make a great candidate for selling NOW.
Very few people can get the thought of moving out of their heads once that thought is in there.
Call your REALTOR NOW and get that process started.
Every house that hits the market in the next 4 months will get LOTS of attention and will likely sell relatively quickly as long as it is fairly priced and in show-worthy condition.
The worst thing that could happen is that your Christmas present to yourself in 2014 is that move you’ve been thinking about doing for the past 6 years.
Want to discuss any of the above with a local expert?
Connect with me, and let’s get together.
Exciting times, eh?