How Home Prices, the Economy, and Your Attitude Are Connected

Home prices are tied to the economy very closely. When the economy is running smoothly, home prices and sales are soaring and people feel more secure with their money and their stability. But when one of these things changes, they all change with it.

If the economy starts to turn, people begin to lose jobs and want to leave the area searching for different work. Because there is less work, less people want to move to the area, leaving sellers stuck. As the housing market begins to lower, home prices drop and people aren’t worth as much money as they were before. They begin to feel poorer and stop making big ticket purchases. The loss of that cash flow hurts the economy more, and the spiral continues.

Housing Market

If the housing market begins to turn, then homes lose value, people feel poorer and the economy suffers. If people begin to feel poorer without either the economy or the Dallas housing market turning, they can drag the whole thing down. Sometimes politicians or other interest groups want people to feel poorer to sway public opinion, so it is possible for this to occur, and it has occurred in the past.

You can do your part to help the economy and the housing market by remaining calm about your finances. Focus on making smart economic decisions and stay calm. It’s important to prepare for a down-turned economy, and keep as level as possible. If you practice this when the market is high, it will be easier on your family when the market is low.

Easier Said

This advice is easier said than done, especially with job loss, the rise of foreclosure rates, and increasing Dallas short sales. The light at the end of the tunnel is getting closer. It will be a long battle to get there, but we will be seeing relief.