Is the Glass Half Full or Half Empty?

by | Apr 4, 2023 | Uncategorized

In visiting with financial advisors, bankers, and businesspeople, plus reading, or listening, to numerous pundits, I hoped to get a consensus on the state of the economy and what to expect with interest rates.

Not surprising, there isn’t a consensus. The answers indicate an equal split between a positive and negative outlook and is demonstrated in the financial markets as they move up and down like a rollercoaster.

An exception to this quandary is real estate ownership, which continues a steadfast pace. Over the past 80 years, the increase in home values has averaged 3.5% each year, and 4% annually over the past few decades. Historically, the rate is slightly higher than inflation.

The Federal Reserve appears to be committed in taming inflation with raising rates, at least at the moment. And finally, there is conversation in Washington on how the politicians might slow spending.

Only time will tell how that plays out.

Moving the economy in a new direction is a daunting task. Therefore, a high rate of inflation will continue over the next several years.

In the meantime, potential buyers can explore how they might improve their opportunities with creative lending and making the best out of the circumstances that prevail.

We will not see home values fall in the Sioux Empire, nor will the mortgage rates decline. Even in a recession, values will hold as we see rates soften and demands increase.

Matching your house with your lifestyle will give you more joy. It’s undisputed. Waiting for economic changes will only put that joy on hold.

We can either live with optimism or pessimism, a glass full or one that’s empty. The only empty glass you’ll get with real estate is not having the house you deserve.

We invite you to call or text anytime, 605.359.4100.

Tony Ratchford, licensed Broker, Author, Coach, Manager, and Sales Consultant