Realistic Threats Facing The Real Estate Market

Sure we have been enjoying insanely low mortgage rates for some time now, and combine that with some positive housing market data here and there, you would think that it’s going to be smooth sailing and sunny skies with bunnies dancing around from here on out right?

Think again.

I stumbled across an article from Marketwatch.com that references a report from the Counselors of Real Estate (CRE) that listed the top 10 threats the real estate market will face in the next 10 to 30 years and a lot of them have the potential to have a significant impact on the housing market.

I’m only going to touch on a few because you should check out the article and determine your own opinion.

I found it interesting that the CRE discussed what I think could be the biggest problem facing the real estate market, and that’s the impact of global change and uncertainty. We all know how much the European debt crisis has affected our own economy, but with that comes the trickle down effect. If companies’ stocks aren’t doing well, they will have to lay off employees who will lose income and then not have the money to spend on goods and services, let alone a home.

Considering the Eurozone economy is about as durable as Hulk Hogan’s tank top, this issue is something that needs to be taken into strong consideration.

The CRE also touched on the fact that college students that graduate may not be in the housing market directly out of college. When you think about it, graduates have student loan burdens as well as hesitation to make major purchases because we’ve been told our whole lives that we need to be “putting money away” without anyone ever telling us how much we should be putting away.

As a recent-ish college graduate with a great job, I’m still not even close to being in a position to buy a home, even though I heard somewhere that mortgage rates are near all-time lows and that buying is cheaper than renting.

I can’t remember where I heard that though. Maybe it was here.

At any rate, according to the CRE, these issues won’t become problematic until 10 years from now, but at the same time, we can’t disregard the importance of them.

Call me back in 10 years to see if these held to be true.

 

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