We’re now more than halfway through 2019, and we’re in the heat of the summer market. This time of year is always the busiest for real estate, and there’s still a lot of uncertainty about what’s going on in the Harrisonburg market. Currently, we’re dealing with really tight inventory conditions, which naturally leads to a lot of multiple-offer situations and frustrated buyers.
On the national and global level, there’s also a lot of uncertainty about the economy and how that will ultimately affect the housing industry. For one, next year is an election year, and many wonder about the political implications. There are questions about how tariffs will affect us domestically and globally, for example. We’re also dealing with an inverted yield curve, which has historically always preceded a recession.
A recent study from the Federal Reserve Bank showed that despite all this chatter, 65% of Americans still think that owning real estate is a strong investment. This is a 9% increase since 2014. Here’s why homeownership is still considered such a good investment:
1. Your home is a forced savings plan. By paying your mortgage every month, you’re building equity in your property, which you can then use for other investments like a kitchen remodel or a home equity line of credit. Equity in your home is one of the most accessible forms of cash out there.
2. The wealthiest 1% either have their hands in real estate or have made their money through real estate. Most everyone ranks real estate as the best investment for the long-term growth of your net worth—even over stocks, bonds, mutual funds, precious metals, and savings accounts.
So in the end, don’t listen to all the hype. Talk to your trusted financial advisors, tax advisors, and real estate agents who already have their fingers on the pulse of the market. They’ll help you to figure out what’s going on before you make any decisions.
If you’re currently renting, reach out to us. Let’s talk about getting you on the path to homeownership.