Hot Chicken on a Brexit
I’ve held off on writing about the Brexit until the dust settled and calmer heads prevailed.
The stock dumping tsunami subsided on Tuesday when bargain hunters flooded the exchanges to scoop up deals. And we are seeing the same thing happening today.
Like most, you are probably wondering how this change in European politics will affect the Nashville market.
The long term outlook is quite unclear. It truly depends on the ability of these politicians to set aside their petty grievances and separate in orderly fashion. If that happens, I do not expect any significant changes for Nashville.
For the short term, this is what I expect for Nashville.
For the last ten years, the stock market has been full of uncertainty. In times of crisis, money flows to safer havens to avoid unnecessary risk.
That means that I expect more international investment in the most secure country on earth, The United States of America.
While people will continue to invest their money in the stock market, I expect they will be hedging their bets by investing in real estate.
Although, real estate has taken its share of lumps over the last decade. It is still seen as a safer bet than the stock market by many financial experts.
Since Nashville is known internationally and is getting lots of accolades, I expect that we will have more investment from outside of Tennessee in our wonderful city.
This movement will likely continue to push up prices for residential and commercial real estate.
This is great news for homeowners and not so great news for those looking to buy a home in Nashville.
However, there is a silver lining in this disaster for home buyers. The uncertainty in the market is expected to hold interest rates lower at a time when the Federal Reserve was moving in the opposite direction. Some experts expect the rates to dip below the 3.33% average for 30 year mortgages in 2012, which was our all time low.
We’ve never experienced a market quite like the one we've enjoyed for the last few years. When a market is appreciating, you would expect that the mortgage rates would be climbing with it.
This is not the case. Low rates with an improving market make it a great opportunity for both buyers and sellers. I’m not sure we will see this again in our lifetimes.
If you’ve been considering making a move and are not quite sure about the market, let me know what you are thinking.
I’d love to hear from you!
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