Interest rates are expected to increase in the near-term and the stock market has been volatile as of late. How will this affect you if you are thinking of buying a home in the Boynton Beach area or selling your waterfront home in the Lauderdale by the Sea area? Well, the recent Case-Shiller Home Price Index touched on these subjects in the June 2015 report.
David M. Blitzer, Managing Director and Chairman of the Index Committee noted in the June report, "nationally, home prices continue to rise at a 4% to 5% annual rate, two to three times the rage of inflation." As mentioned in a previous post, the South Florida housing market is outperforming.
Mr. Blitzer went on to say that the, "missing piece in the housing picture has been housing starts and sales. These have changed for the better in the last few months. Sales of existing homes reached 5.6 million at annual rates in July, the strongest figure since 2007. Housing starts topped 1.2 million units at annual rates with almost two-thirds of the total in single family homes. Sales of new homes are also trending higher. These data point to a stronger housing sector to support the economy."
The rosy US housing picture was tempered a bit. Mr. Blitzer later on mentioned, "two possible clouds on the horizon are a possible Fed rate increase and volatility in the stock market."
In regards to interest rates and the US housing market, Mr. Blitzer stated, "a one quarter-point increase in the Fed funds rate won't derail housing. However, if the Fed were to quickly follow that initial move with one or two more rate increases, housing and home prices might suffer."
With respect to the volatility of the stock market and housing, Mr. Blitzer said, "a stock market correction is unlikely to do much damage to the housing market; a full blown bear market dropping more than 20% would represent some difficulties for housing and for other economic sectors."
I take an analytical approach to buying, selling and leasing real estate. If you are thinking of selling or buying a home in Toscana in Highland Beach, please feel free text me or call me at 561-247-3550.
For free home searches, please text me your name, e-mail address and phone number or visit my Web-site at http://homes.MYsouthFLrealestate.com
Michael Friedman
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550
An Analytical Approach To Buying, Selling and Leasing Real Estate
http://MYsouthFLrealestate.com
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