How will the fiscal cliff effect us in Encinitas. Housing sales continue to rise in this Buyer's market. Inventory is still low, so if you want to sell, now is the time. But what about the fiscal cliff. How will it effect us in our local markets? This is a great article in Forbes explaining that even if we went over the "fiscal cliff", it could not spark the kind of "price hermorraging" witnessed when the housing bubble burst 5 years ago.
“While there are underlying forces pushing growth in housing, it’s not going to be robust until the public gets comfortable with the idea there is going to be a growing employment and income environment,” Doug Duncan, chief economist at Fannie Mae, told the Wall Street Journal recently.
The public's confidence is going to grow as soon as we feel safe with the decisions made after we experience the effects of the fiscal cliff.