What does the stock market slump have to do with real estate? John explains in this week's Tuesday Morning Coffee.
Hey guys! John Jones, Tuesday morning coffee. Let’s talk about this stock market. The stock market has
dropped over 500 points the last two days, Friday and Monday. It gets a lot of people scared. What
does that mean to real estate? What does that mean, not only to real estate, from a national
perspective, but what does that mean for local real estate? Um, some experts will say that when the
stock market drops that that is good for real estate. That it will, in this instance, maybe prevent interest
rate hikes in the near future because they don’t want to hit both markets at once. Uh, some people will
say that when the stock market doesn’t do well that people invest into bonds which when bonds go up,
interest rates go down, so that also could be perceived good in real estate. Some other experts say that
when real estate goes down people want to invest, or excuse me when the stock market goes down
people want to invest their money into real estate, it’s a safer deal, so all those things could be positive
for real estate. Then you do have some experts that say when the stock market takes a plunge like it
did, that it freezes people, it puts a lot of fear into people, consumer confidence goes down. People
start worrying about their savings accounts. People start worrying about their investment accounts.
People start worrying about their jobs and therefore, it could negatively impact real estate. Um, at the
end of the day, I think we have to remember that real estate is local, every market is slightly different, so
although we are all effected by the global markets, the national markets, um, it really, what happens
here locally can outweigh those things. So, here locally, in Nashville, um, as long as there is good job
creation, there is a lot of excitement about this place and um, people have confidence in their jobs here
locally, um, I feel like our real estate will continue to thrive as it has in the last two years. Um, but when
one headquarters closes down, or something like that, locally, obviously could effect things, so we will
kind of stay on the look out. I don’t think it’s time to get real excited or get real scared either way, but it
is definitely something to keep our eye on as the Dow Jones did take a very heavy decline over the last
couple of days. If you need anything real estate related, call us at 615-867-3020.