If The Stock Market Crashes In 2018, How Will It Affect Real Estate Value? Like this complex business, some topics are also very difficult to describe.If you don’t understand the term stock market crash, it’s an unexpected dramatic drop in stock prices across a significant cross-section of a stock market. These crashes are a really big concern but what goes up must come down. In 2012-2013 housing market also faced crashes that still haven’t fully recovered. What happened to real estate value if the stock market crashes in 2018? People like to move their money into real estate when stocks go down.” According to the several top real estate brokers, it’s good to move on safe assets like real estate when it’s an uncertain time or stock market crashes. Whenever stock market goes down it always helps out real estate. As it the next highest option to invest a money. But it’s not always favorable for real estate sector. Fall in the stock market is also a sign of bad economic conditions which directly and indirectly can hurt the real estate sector too. This unexpected fall can also slow down trade, long-term job growth and makes people take a step back in making any big deal. What are the words of top realtors on stock slump is that “There is no doubt it is good for us. It will maintain interest rates low and help transfer more money into bonds instead. This, plus low oil prices, helps real estate sector.” when crashes knock the doors of the stock market, every investor looking effective and better alternative ways and real estate comes into the list which can offer a higher payout.
According to other Home Realtors, it also depends and varies according to the location. “It very much depends on how sensitive that real estate is to local and global economic fluctuations,” If you also have some plans to purchase a home then keep remember that the risks of crashes in 2018/2019 is highest. Before planning to invest, have looks on the list of top 10 Cities which most likely to experience a Housing Crash:1. Portland, Oregon 2. Charleston, SC 3. Buffalo, NY 4. Fresno, CA 5. Los Angeles, CA 6. Dallas, TX 7. Salt Lake City, UT 8. Austin, TX 9. San Jose, CA 10.San Francisco, CA
Here’s I have collected few reasons on why we may not be in a housing bubble/crash situation: ● ● ● ●
Still lots of all-cash buyers, with few zero-down purchaser Interest rates remaining small Affordability index not as bad Home-Buyers and lenders more cautious
Before stepping into this investments make sure you are aware of housing predictions to know for 2018. House prices are expected to rise up to 3.2 percent on new January of 2018. it helps in easy home sales. Mortgage rates are expected will continue to rise and it could cross 34 to 5 percent rates. Existing home sales are also forecasted to rise 2.5% as the trend in low inventory begins to reverse course. It is also predicted that new home sales will increase with existing home sale. Source: http://www.fastexpert.com/stock-market-crashes-2018-will-affect-real-estate-valu e/