Why Real Estate Professionals Need to Pay Attention to Wall Street
The Stock Market has been tanking again -- with the Industrial Average down more than 500 points on Thursday, and down more than 10% overall in the past week or two.
There are a number of factors coming together, to depress stock prices:
- The botched handling of the debt ceiling crisis, and a growing understanding that the 'deal' engineered in Congress does not go far enough.
- Fears regarding the health of various European Countries, expecially Greece, Italy, Spain, Portugal and Ireland. European banks are holding a great deal of European Sovereign debt and if one or more of these countries should default, it could cause widespead problems in the finanical markets.
- Recent U.S. Economic data has been soft and is causing observers to wonder if the U.S. is headed back into recession.
- A fear that the U.S. Federal Reserve will find it increasingly difficult to stimulate the economy or markets.
Why Should We Pay Attention?
The current health of the stock market has a strong influence on consumer confidence. This, in turn, has an impact on our buying decisions -- and that is the case whether we are talking about small, discretionary purchases or major purchases like housing.
Many of us will recall that the housing market has stalled during some past shocks to the financial markets -- such as during the credit crisis in late '08 and early '09.
Conclusion
One of the key strengths of a successful Real Estate Professional is the ability to adapt to changing conditions. By closely following developments in the financial markets, you can keep yourself in position to receive early warning signs of shifts in the Housing market.
© 2011 Eric S. Crane. All Rights Reserved.
Why Real Estate Professionals Need to Pay Attention to Wall Street
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The Author, Eric Crane, is a Real Estate Professional in Greater Metro Phoenix Arizona. For questions regarding residential or investment real estate, contact Eric at 602-327-8475 or by email: ericcrane@hotmail.com
Visit Eric on the web: www.JustAskEric.com
Note: Photo used via a Creative Commons license on Flickr.com (through the courtesy of Troy David Johnston), August 5, 2011.
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