Hey team, there has been much speculation about what the credit downgrade in the U.S. may do to real estate prices, investment and the overall real estate picture.
The experts have had some time to think about it and are beginning to weigh in.
In a nutshell, pretty much no impact is the consensus, which is great news for our forward momentum.
Most experts are echoing what Forbes blogger Chris Macke says. “Companies and consumers are already hesitant to spend”. That position is echoed by many of the most significant bloggers on the internet, like Bryan Ellis who has over 200,000 subscribers to his blog. He writes “while this may impact the demand for commercial real estate in the near term, it will likely not dramatically impact the cost of capital so necessary in real estate. After all, for most people, capital to invest in real estate is pretty difficult to come by anyway these days. And while some experts fear that raising the debt ceiling will ultimately lead to an increase in mortgage rates, most lenders are sticking close to all-time lows for now. So while other markets in our own country and around the world react to the debt ceiling “resolution” and subsequent U.S. credit downgrade, the real estate market appears to be hovering resolutely near the bottom.”
As expected, that means full speed ahead for us. Warp speed please Mr. Sulu !