5 Questions to Ask Yourself about Real Estate and Brexit

Another article about Brexit! As the U.K. has decided to leave the European Union they have shaken markets globally, and lowering the outlook for economic growth in the United States. It will take years to see the repercussions, but for right now markets and governments are scrambling to react in all the uncertainty.

It seems like buying, selling, lending, and the whole nine yards is now riskier. Buying big assets, like a house take a healthy amount of confidence, and without uncertainty floating around everywhere, that confidence could fade quickly.

Despite grim headlines, the U.S. economy hasn’t faltered thus far. The silver lining in all this restlessness is cheap loans. Today we know Brexit, tomorrow is still to be handled day by day. Without seeing the future, here is what we know.

Will home prices fall?

Maybe! Nationally, homes value might slow down in the short term. The buyers who have money in the stock market aren’t sitting as pretty as they were yesterday, and they’re starting to sweat. The upside is that mortgages are about to get cheaper, which boosts their incentive.

They aren’t expecting a price surge, but they are kind of expecting a few dips in some markets. The fears of uncertainty of the stock market will probably keep people on the conservative side of bidding. They’ll be less likely to bid up $50,000 for a piece of real estate.

The luxury market will feel a slight sting. The foreign real estate investors have their hot spots in New York, Miami, and other places. With the stock market losing some of its value, there is less wealth to go around.

What will happen with interest rates?

Many loans are about to get cheaper because mortgage rates fall when Treasury rates fall, and Treasuries just took a steep dive as money fled out of the U.K.

Right now a good mortgage lender is bracing themselves for a rush of refinance applications. They don’t know how long this train will ride, but they are preparing themselves accordingly.

Can I still get a mortgage?

Most likely, but if you were going to cash out your stock holdings, or borrower from your 401(k) to finance it, you best think again. As the markets dip and dive into freefall, your wealth is shrinking. When the rates fall as they are, check your math and ask your lender or financial advisor.

They may tell you it is smarter to put down less, and take out a bigger loan. Mortgages have been difficult to get for a while now, so the good news is Brexit isn’t making it any more difficult.

Should I wait to buy?

The U.S. economists are lowering the growth forecast for us since “job growth and unemployment” are improving…We all know those numbers are being inflated, but whatever they say!

We don’t know if this will continue, but going forward corporations might be less hesitant in their hiring.

Buying a home is a personal, so if you have the money, means, and will, don’t let Brexit stop you.

Should I wait to sell?

The fundamentals will never fail you. Homes are highly coveted right now, and there aren’t enough to go around. Brexit has no impact on that.

Last month home sales hit their fastest pace on record. This global event might pump the brakes for a short period, but it won’t last long. Homes might sit on the market a little longer while buyers watch their stocks carefully, but it will rebound.

Regardless, the best strategy is having the right pricing. That won’t fail you ever! 

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