Tom Stynes, Real Estate Pro in Cupertino, CA

What’s been the impact of the recent stock price drops been on your decision to buy a home?

Asked by Tom Stynes, Cupertino, CA Tue Oct 28, 2008

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Actually, the stock market woes don't automatically and universally translate into less cash for everyone. Some people--especially ones whom have been burned in the past investing in stocks--opt to invest in other products like forex, real estate, etc.

I find the performance of the stock market--whether good or bad--to be mostly irrelevant. Of course, I realize, as the DOW continues to drop, that the opportunities to access cheap capitol will also decrease (which will be offset somewhat by the additional liquidity and a Fed-rate cut). Nevertheless, whether or not the DOW continues to drop, I always have the option to purchase real-estate using creative financing (which has nothing to do with the DOW).
0 votes Thank Flag Link Wed Oct 29, 2008
The stock market down about 30% this year, house prices down about 30% (in bubble areas). Another 40% drop, and it should be a good time to buy.
0 votes Thank Flag Link Wed Oct 29, 2008
Tough question to answer quickly...
Stock market going down means less cash to purchase a home. However, when the DOW is dropping so rapidly, real estate looks like a better investment. I paid down my mortgage just before the stock market started tumbling. Glad I did that!
0 votes Thank Flag Link Tue Oct 28, 2008
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