A good real estate market makes for a good financial market. At least that’s what I think when I step back and look at the big picture. You might think differently but let’s take a look at the current real estate market and the effect it has on the economy.
There aren’t as many homes on the market which means homeowners aren’t hiring contractors to fix up the home. People aren’t moving to new homes so rentals of moving trucks or hiring professional movers are down.
A lot of people buy new furniture or accessories when they move into a new place. Because suddenly that couch that was perfect in your old home won’t fit in the new living room so now you need a new one. Without home sales this isn’t happening!
And don’t forget the little purchases that add up to a lot of money. Maybe you need new curtains, some paint, light fixtures, baby proofing if you are in that stage, people spend a lot of money making their new home well home! There’s nothing worse than being in your on house and having not feel like home.
All of this traces back to home sales. When home sales are up, these businesses are busy, when they are down, only the strong survive.
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