Uncertainty always exists. It just takes events like Brexit to see it.
Unfortunately, big events, in an age of social media and a larger shared community, are happening more often. And they each have the potential to impact what is one of the US’ biggest economic drivers - housing. It underscores the old adage that the only person you can control is yourself. Never has that been more true than today.
90% of millennial renters today still dream about owning a home. Housing is hot. But, home demand is outweighing supply driving up prices. Builders are trying to keep up. All the players are trying to be competitive. The housing market is exciting yet there is some recent news that may be in the back of new homebuyer heads:
- Economist Robert Shiller indicated prices are rising a little too rapidly in certain markets (Seattle, Dallas, parts of California).
- Diana Olick writes about new warning lights for rising home prices
- Underwater homes are also now the lowest since 2006
- Lennar CEO says for building this may be the frustrating new normal
Each of these imply that maybe the hot market is fragile. But in the short term at least, isn’t it always? Sure if you stay in a single home for 30 years, much like your 401K, prices should go up. But in between those years and in particular during the first few years, homeowners have always seen volatility that has been tied to events outside of their control. Brexit is just the latest example. We are not sure what will result, but the markets never like change and we at least know that.
This is why homeowners need to be protected, much like the banks, with tools that help ignore all the noise that can impact your investment. That is why we created +Plus Down Payment Protection. It protects your home down payment against uncertainty. Homebuyers are required to buy protection for lenders at a closing, why shouldn’t they have the same?
Brexit is pretty intriguing no matter how you look at it. But if you are looking at buying a home, don’t stress over it. Just make sure you look at all of the modern tools available to protect you from the uncertainty.