Even though the Wyckoff housing market looks as certain to rise as
the spring shoots, behind that optimism is the perenniel question about
whether another “dip” is coming — a lot of which has to do with Wall
Street. Remembering how 2008′s economic downturn saw the housing market
and stock market take blows pretty much simultaneously, it’s not
far-fetched to assume that the two markets always move together. And
while some folks are emboldened as stocks soar to record-level heights,
for others, the same phenomenon causes altitude sickness. What goes up
must…well, you know the rest!
Historically, the housing market and stock market are hardly
inextricably joined. Nor should that be a surprise. On the one hand, the
housing market reflects a real good (as ‘real’ as it gets!) — something
that carries intrinsic utility. That won’t change until people figure
out a way to exist without shelter.
Stocks, on the other hand, represent participation in ownership of a
venture, and a share of financial gain (or loss) from its success. Both
markets are influenced by some of the same factors (employment,
inflation, etc.), but to different degrees. It’s widely agreed that the
direct influence of one on the other waxes and wanes.
So when anyone thinks about whether a dip is coming in the stock
market, and whether that should influence their real estate thinking,
I’m pretty certain that the answers are less important than the more
measurable effects that buying or selling a home will have on their
day-to-day living experience. With positive housing market data
continuing to arrive (like the recent rise in land values — up 13% last
year; the first annual gain in eight years), it’s hard not to agree with
the majority of economists that the positive housing market trend is
likely to keep going for a good while longer.
If you are considering selling your home and want to explore the
housing market in Wyckoff this April, give me a call. Regardless of
what each market is doing at any given time, I keepe the latest
up-to-date statistical and local neighborhood information available for
my clients.
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