So the trade deficit narrows as reported on BBC news http://bbc.in/ikc3RY, so what does that mean for real estate forecast? The first thing to do is determine the reason behind the fall in trade deficit, which is a good thing btw. It turns out that imports fell by .05%, while exports risen for the month. Here is my forecast:
Lower imports lead to lower value for dollar because more dollars are available for Americans to spend! More money means higher purchase power. Higher purchase power leads to higher demand for goods including housing! One can conclude that in return home prices might rise or remain fixed at least for the time being. Of course there are many other factors to consider like season, construction costs, interest rate...etc but given this info my forecast for property values is cloudy with a chance of sunshine! Happy holidays!
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