If low inventory and homes flying off the market in certain areas are not indication enough about the Central Ohio housing recovery, then I think we should also take a look at the Division of Real Estate’s influx of applications for Real Estate licenses. It is a different ball game than a year ago. We are headed out of the doom and gloom of the burst bubble and into the bright, shiny new world of… Rising Interest Rates! Hold the phone!
Yep, ladies and gentleman, let’s start talking about the inevitable fact that the signs of housing recovery and increased applications to be a Real Estate agent will eventually result in higher interest rates. Yet, the rise in interest rates will probably bring about a rise in property values as discussed in The Deal: Housing is Not an Economic Fix. Also, there is talk about an increase in household wealth, which will bring stronger consumption, which will feed back into housing and so on and so on.
Summary, don’t freak about the rise in interest rates. In order for the recovery to really take place and hold, the interest rates are going to have to rise. However, with the rise in interest rates other good things should happen. They are all signs of the housing recovery. They are also signs of economic recovery. Once the shock runs it’s course, we will realize the sky isn’t falling.