Image via Wikipedia
The link between politics and real estate is undeniable. In fact, when Greenspan was working during the Clinton administration in the?1990’s he made mention that the economy was heading for a major fallout. Within that year the stock market slowed down, real estate growth was its lowest since coming out of the recession, and Greenspan was a buzzword. Today is not much different. The events that happen in politics have significant impacts on real estate, not because the housing market is keyed into the government, but because it affects buyer confidence.
A Feel Good Purchase
Feeling good about a home purchase is more than the home. If there are children present, then feeling good could include the nearby schools, the other children that may be present in the neighborhood, and the sustainability for work. In the recent events that Americans have experienced with the Great Recession, confidence is more important than ever. An example of this is with the highly publicized death of Osama bin Laden, which has brought about a sense of confidence, and the real estate market has responded with a slight spike in sales.
Morale: The Possible Cure
The burst of the bubble rattled the American people. The political events that have taken place have prevented people from wanting to dive into a purchase that could destroy them. The morale in the consumer market has been low, and increasing this is the key to forming a solid business structure, because this could be the link between feeling good about the purchase, and being confident about the purchase. With regards to the housing market, this principle is absolutely imperative. The political strategies to bring the housing market back to life have begun to take effect. Morale is boosted with tax credits, lower interest rates, and great pricing on homes.