Analysts estimate that there is about $1 trillion just sitting in bank vaults as a result of Government efforts to stimulate the economy and to keep interest rates low. It was hoped that the banks would lend out all that cash and somehow jump-start the economy. Instead the banks are just sitting on the cash.
How does this affect the real estate market? Sooner or later that money will find its way into the economy and most likely trigger significant inflation. This is a reason why your clients should buy now rather than wait for potentially lower home prices. Buying now presents an opportunity to lock in incredibly low fixed rates that could be gone forever in a few months.
Fortunately, many of our clients understand this and are aggressively bidding for homes now, knowing they are getting a bargain even if home values continue to fluctuate somewhat.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167