3240 Commercial Street Southeast, Suite 100
Salem, OR 97302
Robert Reynolds Jr.'s Blog
2015 Outlook
Posted On: December 16th, 2014 4:38PM
Some positive signs on the real estate front ahead for us in 2015. As gas prices continue to fall closer and closer to the $2.00 a gallon point and the recent jittery stock market the trend generally means more money will flow into bonds thus pushing the price of the bonds up and lowering their yields. Now how does that affect us here in Salem? Lower yields and rates do several things. The more significant being that lower mortgage rates open up buying opportunities for buyers seeking to purchase a new home. Another trend is that Investors who are dissatisfied with the current low yields the banks currently offer may look for alternate investments like rental property. I have heard several economists talk of a possible deflationary cycle, this would also likely push interest rates lower. One certainty is that with lower gas prices, there will be more disposable income out there and only time will tell as to how much of this disposable income consumers will put into our local housing market.
