The Real Estate market is facing significant head winds this year. The overstimulation of the economy leading to serious inflation has caused the Federal Reserve to take a position which continues to create higher than necessary interest rates for mortgages and also stressing banks across the nation without adequate risk management measures in place. The news media is not telling us everything going on in the banking sector.
While the recent years price appreciation has not evaporated due to a nationwide shortage of housing inventory, first time home buyers can face much more stringent lending restrictions or will not be able to pursue home ownership without a delay. The jobs market is still relatively strong so the recession that the Federal Reserve seems to want to happen has not materialized. All this means that Americans spending power has been significantly decreased. On top of all this, the Administration in charge of the Executive Branch appears to be trying to use social engineering similar to what caused the Housing crisis in 2008 by asking better qualified buyers of real estate to subsidize buyers that have a riskier track record through unnecessary fees on loans. The Administration is also constantly attacking the 1031 section of the Internal Revenue Code which could have catastrophic consequences by sucking much needed investment capital from the free market.
We are providing this information to those that are reading it because as US citizens, we can become engaged with our elected representatives to push back on all these socialist policies which have led to such misery for so many hundreds of millions of people over the last 100 years of human history. Call and email your representatives to tell them to stop risking the future of your children and grandchildren as it relates to the American dream.
I promise the next blog post will be much lighter than this one. Lisa and I are here to serve you. We look forward to speaking with you.
