Possible federal budget sequestration, continued government deficits, spending cuts, uncertain taxes, and federal policies—they’re all in the news along with a variety of other uncertainties about the economic outlook. The Economic Policy Uncertainty Index shows that uncertainties about future government policies are at historic highs.
What Does this Mean To REALTORS®
The deluge of negative and uncertain economic information in the news can be overwhelming: innumerable blogs, articles, and experts proclaim forthcoming problems. This never-ending cacophony of concerns can be confusing to potential home buyers. It may be helpful to note that the primary benefit of homeownership is the lifestyle it provides. The primary benefits of homeownership are well known—increased educational, cultural, and community opportunities available to families and individuals. The secondary benefit of home ownership is the slow accumulation of wealth as the property appreciates; however, this is a benefit over an extended period of time and is relatively independent of month-to-month fluctuations in the economy. In fact, the economy generally muddles through its problems, and NAR’s economic forecasts—which have been reasonably on target in recent years—show that that the housing markets are in a slow but continued recovery from the Great Recession—circumstances supporting a prudent, conservative buyer’s decision to purchase a home.
There is a deluge of negative commentary and uncertainty—but the advantages of homeownership are well defined on NAR’s website. This information can be a resource in addressing concerns over allegedly unstable economic times.