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We have been helping our customers buy, sell, rent and own property in Naples for over 12 years. We have all the usual credentials but our customers tell us that what really makes us unique is our knowledge of the Naples market and exceptional customer service.

Christine Dike has been providing incomparable Real Estate Services, Rental Services, and Property Management Services in Naples, Golden Gate Estates, Bonita Springs and Estero, Florida, for over 10 years.  Broker-Owner of ToastyinNaples.com Realty she will take care of you every step of the way on your real estate journey whether you are buying, selling, renting a home or condo for the week, month or year, or investing in rental property.

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How the Housing Market Benefits with Uncertainty in the World

February 19, 2020

Are you feeling that the world is too uncertain to take your hard-earned money and invest in Real Estate?  When we wonder about things we don’t understand, we tend to look to the experts and this article below has some great quotes from experts in the Real Estate and Financial world.  They are saying now is the time to invest in Real Estate because investors tend to stick close to US investments when the world is uncertain.  This means mortgage interest rates will continue to stay low which helps you afford a more expensive home.  Our prices in the Naples area are still excellent which allows you to pick that home you have dreamed of.  So stop worrying and call me so together we can find the home that is perfect for you and your family!

Courtesy of Keeping Current Matters 2020

How the Housing Market Benefits with Uncertainty in the World | MyKCM

It’s hard to listen to today’s news without hearing about the uncertainty surrounding global markets, the spread of the coronavirus, and tensions in the Middle East, just to name a few. These concerns have caused some to question their investment plans going forward. As an example, in Vanguard’s Global Outlook for 2020, the fund explains,

“Slowing global growth and elevated uncertainty create a fragile backdrop for markets in 2020 and beyond.”

Is there a silver lining to this cloud of doubt?

Some worry this could cause concern for the U.S. housing market. The uncertainty, however, may actually mean good news for real estate.

Mark Fleming, Chief Economist at First American, discussed the situation in a recent report,

“Global events and uncertainty…impact the U.S. economy, and more specifically, the U.S. housing market…U.S. bonds, backed by the full faith and credit of the U.S. government, are widely considered the safest investments in the world. When global investors sense increased uncertainty, there is a ‘flight to safety’ in U.S. Treasury bonds, which causes their price to go up, and their yield to go down.”

Last week, in a HousingWire article, Kathleen Howley reaffirmed Fleming’s point,

“The death toll from the coronavirus already has passed Severe Acute Respiratory Syndrome, or SARS, that bruised the world’s economy in 2003…That’s making investors around the world anxious, and when they get anxious, they tend to sell off stocks and seek the safe haven of U.S. bonds. An increase in competition for bonds means investors, including the people who buy mortgage-backed bonds, have to take lower yields. That translates into lower mortgage rates.”

The yield from treasury bonds is the rate investors receive when they purchase the bond. Historically, when the treasury rate moves up or down, the 30-year mortgage rate follows. Here’s a powerful graph showing the relationship between the two over the last 48 years:Popular Perspective Delivers Gift to U.S. Housing Market | MyKCMHow might concerns about global challenges impact the housing market in 2020? Fleming explains,

“Even a small change in the 10-year Treasury due to increased uncertainty, let’s say a slight drop to 1.6 percent, would imply a 30-year, fixed mortgage rate as low as 3.3 percent. Assuming no change in household income, that would mean a house-buying power gain of $21,000, a five percent increase.”

Bottom Line

For a multitude of reasons, 2020 could be a challenging year. It seems, however, real estate will do just fine. As Fleming concluded in his report:

“Amid uncertainty, the house-buying power of U.S. consumers can benefit significantly.”