Debt Ceiling

The debt ceiling.  Yes, it’s a big topic of conversation and I’ve had a couple of people ask me how it will impact real estate.  I’m happy to answer, but let’s set politics aside.  If the US defaults in the coming months, it will negatively affect real estate, just like it would almost everything else.  Interest rates will rise making it harder on buyers.  People will lose their jobs, which will eventually lead to people needing to sell their homes if they can’t afford to make their mortgage payments for a prolonged period of time.  Or they might just stick their head in the sand and get foreclosed upon.  I think many people who keep their jobs will simply not even attempt to sell their home given the bad economic conditions so prices would fall, but maybe not crater.  There’s more negative aspects, but those are the big ones.  Let’s just hope these politicians get their act together so we don’t have to even think about it.

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