Local Real Estate Industry Responds To National Debt Crisis
Who knows whether cooler heads will prevail in Washington and even more important when? What we do know, the real estate industry is watching.
"We don't see a lot of effect."
Realtor Fred Keas expressing optimism about the government shutdown ending soon and the federal debt ceiling threat averted. But buyers may not be as confident.
The government shutdown scares everybody, frightens everyone it's not slowing them down from looking for trying to buy their dream home.
On the horizon...the danger of higher interest rates. That's the next crisis that's looming.
"My own personal opinion is that we're not going to see a dramatic increase in interest rates. In fact we've had a slight increase over the past few weeks in the past month and in fact they've floated back down a little.
But this is different, and higher interest rates are projected if the government goes over the fiscal cliff and defaults on its loans. Keas would like nothing better than to unlock the mystery of the real estate future under that scenario. The reality is gridlock in Washington equates to a door, even "Keas" can't unlock.
"In my career in real estate which spans about 35 years. I have sold one up close to 20 percent. People can't imagine that. They wouldn't be buying right now."
As the partial government shutdown has continues, the federal debt ceiling is the next threat. Letting that go unresolved could be projection no one can afford to gamble.