Residential Real Estate (housing market) has a huge impact on GDP (multiplier effect)
Real Estate transactions drive business for: Financial, Legal, Accounting, Architectural, Building, Construction, Landscaping, etc. services
Real Estate transactions also drive demand for home improvements, new furnishings, new appliances, etc.
Residential Real Estate Demands
Long-term mortgage interest rates can impact sales significantly
The home price consumers can afford is driven by their incomes
If rates rise, many people will stay put if they have locked in mortgage at lower rates
Moving would require them to get a new mortgage at a higher rate!
What Can Americans Afford?
Safe estimate is 3.5 times income
Translates to $217k in 2017
Residential Real Estate Indicators
New home sales (quantity) and average price
Existing home sales (quantity) and average price
Warnings and Disclaimers
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