Last week the Standards and Poor put in affect a decrease to the U.S. AAA credit rating and that send the stock market on a tumble. Only time will really tell what all this means and how it will impact the individuals and impact the masses. One thing I do know is this turned more and more people into looking at real estate as a safer place to park their investment dollars.
Real estate is a hard and tangible asset. It provides a home for our ever increasing population. As the populations continue to increase and financing rebounds it is clear to most people that the real estate values have really nowhere to go but up. According to the U.S census bureau the U.S Population is increasing at the rate of (net) one new person every 10 seconds. Wow you do the math!
Housing need is an ever increasing commodity. With today’s volatile stock market and today’s incredibly low home prices the risk in real estate diminishes every day.
It continues to be important to monitor market activity for those locations that are in the best position to rise but most feel confident they will be safest in real estate.
Now Fitch (A rival rating service) gives The U.S. the full 3 star rating, they say “the fact that the key pillars of the U.S.’s exceptional creditworthiness remains intact: its pivotal role in the global financial system and the flexible, diversified and wealthy economy that provides its revenue base,” Fitch said in a statement. Read more at the Washington Business Journal.