August 11th, 2011 11:03 AM by Gregg Mower
Is this volatility in the stock market good for interest rates?
In the late it has been good, over all, but with volatility in the stock markets it makes folks who would have otherwise bought Real Estate maybe hesitate as they watch their savings fluctuate. On the other hand investors may choose to get out of the stock market and put their investment dollars back where there can be consistent income, Real Estate rentals. We have all, traditionally, seen low interest rates as a catalyst to buy things. In this strange economy the fact that interest rates are as low as they have been in several generations is not influencing people to make that purchase Why?
People are afraid, afraid of their jobs going away, afraid of their money going away, afraid of loosing their life savings. It has always been true that the investor who gets there first wins. Investors have been quietly buying Real Estate for over a year now, and more are entering the market everyday. When people ask me if now is a good time to buy, for the last several years I have had to talk like a politician and change the subject or use the old adage that Real Estate is always a good investment for the long term. Now, I have to stand on top of a mountain and shout that now is the time to buy. With the price of Real Estate at lows that are way below what they should be and the fact that the smart investors are here buying tells the little guy that they should get there now before the news starts to hit the main-stream media and you find yourself left out of the best real estate markets in history.
Let me know what you think!