Debt Creating a Real Estate Ceiling?So much has contributed to this dynamic and historic real estate market that even the industry experts are scratching their heads as to just how high this market can go. There may be some clues as to what may hold back or even cut back on the steep price escalations, we have experienced for the last 18 months.
According to some financial websites including NerdWallet, they are indicating that three-quarters of Americans have received some form of relief as a result of the pandemic, but without that relief there may be concern as to how physically viable these households are. With those funds many households paid off credit card debt, some mortgages, auto loans and student loans. But the government is not anticipating releasing any more relief, even if inflation continues at its rapid rate.
NerdWallet reported that the average US household owes some form of debt totaling over $155,000 totally more than $15 trillion currently. This is up by 6.2% from one year ago. Now some of this debt may be short-term, as many homes have seen some form of renovation. Stocks like Home Depot and Lowe’s and Angie’s bear this out. But moving forward, things are going to become exceedingly more expensive, as in the case of automobiles, food, and of course housing. As reported earlier, the average rent for a single-family home is now approaching double-digit increases year-over-year. All of these price increases are going to place additional pressure on households to pay down the current debt that they hold. With the average new car cost coming in at over $42,000, consumers are going to have to finance these steep price increases somewhere, only adding to the fiscal instability moving forward.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
