Tam's Tuesday Tip - Sequestration Will Lead To Economic Constipation
It's that word again. I've been debating all week about how to approach this topic and apply it to real estate. Simply put, the way I feel about the sequestration, is that it will lead to economic constipation.
Finally, signs of recovery. Finally, the right mix of low interest rates making way to increased affordability. Finally, diminishing short sale and foreclosures. Finally, property values are no longer plummeting, but are on the increase. We've finally seen visible economic progress and this darn sequestration is about to cause a huge blockage.
Are we over-reacting? I honestly don't know. But the local businesses will be affected, and many workers will see lower paychecks and some will lose jobs. All of the progress that we've made, will be slowing down to a crawl.
I've even setup a Google alert for 'sequestration' so that I can stay informed, as if I don't already have enough email! For years we've been protected by our beltway bubble because of the high number of government jobs and military. But for the first time in my fifteen years of selling real estate, there seems to be a noticeable smell of economic anxiety.
So, what's a buyer to do? What's a seller to do? Well, first of all, no matter what the economic conditions are, the sellers who must sell will continue to put their homes on the market. Buyers' motivation and ability will depend on employment. If you're in the market to buy a home within the next two months and you will be affected, then talk to your lender immediately. Part of the mortgage approval process includes verifying employment and income. Once you're under contract, the lender will verify your credit and employment within 48 hours of closing prior to granting you final approval. If you're under contract now and will be affected by the sequestration, it could make a difference as to whether or not you will actually be able to buy your house.
But my job is not to simply spew out what the media is already telling you, I also want to help you find opportunities. This sequestration could very well be the opportunity that many of you have been lurking around for. What's your take on it?
I'll be around this week for your real estate needs.
P.S. Who was is that said, "Buy when there's blood in the streets." Message me on Twitter @MovingToNova
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