It may seem odd that a political decision in the U.K. could have any impact on American housing prices, let alone Maine specifically, but that is the nature of our increasingly intertwined global economy.
The Brexit vote is pushing interest rates to record lows. Investors in safer U.S. mortgage-backed securities will be plentiful, which will lower the interest rates and allow the rates to remain low. The U.S government debt has tumbled, the yield on the 10-year Treasury falling from 1.75 % to a low of 1.43%.
Currently Maine existing home sales have increased by 25.2 percent in May of 2016 verse May of 2015. According to the Maine Association of Realtors, the median sale price rose by 2.8% or $5,250. Mainers’ personal income has also dramatically risen in the first quarter of 2016. This 1.4 percent increase is the second highest growth in the country. Combining the low mortgage rates and the increase of Mainers’ personal income will continue to increase the number of home sales as well as home values. Do not let this information alarm you; with the strict guidelines and restrictions today’s lenders have to abide by, it is highly unlikely for a purchaser to buy above their means.
For the people who have been procrastinating all that paperwork for a much-needed refinance now is the time. Interest rates are at an all time low and not likely to rise, therefore giving you plenty of time for the process.
The United States may seem more appealing to investors from all over the world for real estate purchases and start up companies. These wealthy investors have to put their money somewhere and the low interest rates should guide them to the states.
It seems the Brexit vote combined with the already increase in home sales and Mainers’ personal income could have a very positive effect on our economy and real estate market. Whether a home purchase/sale, refinance, and investment or start up company the time is now!
Katie Kinney is an Associate Broker at Landing Real Estate. She and her company represent buyer, sellers and investors in Southern Maine. For all your real estate needs contact Katie Kinney at firstname.lastname@example.org.