Dear
Pat,
How will the big stock market drop affect our
property value? It seems to me that a poor stock
market means less money for down payments and
more cautious house shoppers.
---Not Crash Proof
Dear Crash,
You can take your helmet off, since history is
on the side of the Seward/Longfellow homeowner.
It's true that dramatic price increases in
recent years have a parallel in the mid-to-late
1970's, but when the economy cooled in the early
80's local house prices held steady--although
the rate of appreciation did slow to a crawl.
Prices continued to rise following the 1987
stock market crash (favorable interest rates had
far more influence on housing demand than did
stock market worries). Nor were our prices
affected by the early 90's economic slowdown. We
need to remember that our housing stock in the
city is constant, unlike newer suburbs or
commercial developments, where supply is
always |
 |
 anticipating
demand. And let's note the fly-over factor:
since the Midwest has not experienced the wild
inflationary price gains seen on both Coasts,
our fast-rising values remain relatively
realistic, albeit painful to buyers (and their
Realtors!). Even in California, say the experts,
only the move-up market is likely to see prices
flatten or fall as the dot.coms evaporate.
| Pat
Rosaves is a full-time real estate
professional living in the Seward -
Longfellow area. She has more than 24
years experience in helping people with
their real estate needs. Questions may be
sent to her at River Realty, 2543 38th
Avenue South, Mpls, MN 55406. Or call her
at 612-724-1314 or email her at
pat@riverrealty.net
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