Bernstein & Feldman, P.A.

Providing Personal Counsel
And Representation For Over
30 Years

Market activity may affect real estate

As Maryland residents watch the volatile activity of the stock market, they may find that the swings affect their immediate plans for spending money in areas such as real estate. Many have predicted a coming correction in the stock market, but the actual drops that started in August may lead to worry for those who could face losses. Real estate is an area that can be affected both positively and negatively as the corrections play out.

One of the ways market volatility, especially drops, can affect real estate activity is that investors may seek out safer investments. Purchasing certain types of properties may provide a tangible asset that can later be sold or rented. Positive market activity often leads those with significant levels of wealth to invest in more expensive homes. As the market becomes less stable, this activity may drop off as homeowners keep more modest properties instead. The upper-end housing market could be negatively affected as a result.

A rumored increase in interest rates was expected to be implemented in September, but market instability might cause officials to delay this action. Real estate activity could be positively impacted by a delay due to better terms for financing transactions. However, speculation and action could be significantly different. Those who are currently involved in real estate transactions may be eager to conclude these activities before rates can be raised. If rates are held at their current level, however, investors may use the opportunity to add new properties to their portfolios.

People who are thinking about a commercial real estate purchase as an investment may want to discuss their interests with a lawyer. This may help as they decide what type of property to buy. If a property is going to be developed, for example, a lawyer may provide an overview of the steps needed to do so according to local codes and ordinances.

No Comments

Leave a comment
Comment Information