Lately, you might’ve heard some encouraging news about the economy, and if you're thinking about buying a home, it could be just what you’ve been waiting for. After months of talk about a possible recession, experts are now saying we may be in the clear. That shift in the headlines might not seem like a big deal at first, but it could make a real difference if you’re planning to buy in the near future.
What’s Changed in the Economy?
For the last several months there have been a lot of worries about whether the U.S. was heading into a recession. But now, major banks like Goldman Sachs and JPMorgan have dialed back those predictions. Goldman dropped the chance of a recession down to 35%, and JPMorgan is even more optimistic. Why the change? Mostly because of the 90-day tariff pause between the U.S. and China, which has eased trade tensions and improved investor sentiment . (Economic Times)
The S&P 500 (one of the biggest indicators of how the stock market is doing) has jumped up more than 17% from the recent low on April 7th. When investors feel confident, that confidence tends to trickle down to consumers too. (S&P 500)
So, What Does That Mean If You’re Buying a House?
When people feel good about the economy, they’re more likely to make big decisions like buying a home. That’s good news for sellers and real estate agents, but it can also be good for buyers. Why? Because as confidence goes up, mortgage rates often settle down. Inflation has been cooling recently, and that’s one of the key things the Fed watches when making decisions about interest rates. Lower rates mean you can afford more house for your money.
What About the Market in Greenville?
Here in Greenville, the housing market is still going strong, which comes as no surprise. Greenville’s economy is insulated due to a variety of factors. Our average home prices are still much more affordable than the national average, and businesses like BMW, GE, and Michelin continue to invest in our economy and create jobs in the area. Even during the 2008 recession our housing market didn’t crash like most of the market did nationally, it just slowed down a little. So that, coupled with easing trade tensions between the U.S. and China are making the market here a good bit more friendly to buyers. We might see more buyers jumping into the market, which could push demand (and prices) higher in the coming months, so this may be a great time to make your move before that happens.
Bottom Line
The economy seems to be finding its footing for a moment, and that’s giving homebuyers a little more breathing room. If you’ve been on the fence about buying, now might be a smart time to act. Have you been thinking about buying this spring? Reach out to us for more information about the best course of action to accomplish your goals!