Profile picture for SnowDesert

Opinion on Japan disaster and how it will affect US home prices outlook

Not to make light of Japan's disaster and my heart aches for the Japanese ppl 110%, but I'm curious as to how the unravelling nuclear events will affect US home prices, or scurb investors from buying at this time. Thx.
  • March 15 2011 - Chandler
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Answers (8)

Profile picture for aeroneus80
one thing you can count on the demand for building materials like wood will certainly go up and prices along with it....therefore, less building will occur in the us which will force people to buy existing homes....good for real estate prices, but will this be a bigger variable than the interest rate concern, very unlikely.
  • March 21 2011
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Profile picture for the_country_hick
Being close to a nuclear plant has been a concern since they were first put up. Some people have refused to buy close to one. Others did not mind.

My biggest concern about a nuke plant are how high above water is it and can an earthquake take it down? If it is close to the ocean with low elevation or on or close to a fault it would be a serious concern. If those are not a concern it is just the same problem it has always been. People will get back to normal not thinking to much about nuclear plants in a few months after the news quits showing this story.
  • March 18 2011
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Profile picture for SnowDesert
Now, with Phoenix being close to the Palo Verde nuclear generating plant, and the current concerns about nuclear disasters, can you opine on how will this affect the Phoenix area or Chandler property values?
Have you had buyers asking questions about this? Should proximity to nuke plants be in the disclosure statement?

Thx.
  • March 18 2011
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Looks like 7 trillion Yen is just the beginning, the numbers and scope of this disaster are mind boggling.
  • March 16 2011
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Profile picture for hpvanc
Short term we could see a small spike in interest rates if they sell off too much US debt, which would accelerate the real estate price decline.  Six to eight months from now, it will not have an effect.
  • March 15 2011
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I agree with Dan. An affect, if any would likely be that Japan begins selling many investments as it needs to bring money home during the rebuilding phase. That could drive up rates a bit across all types of assets, including eventually US treasuries, which would cause mortgage rates to rise. 
  • March 15 2011
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Profile picture for the_country_hick
The big issue I see is interest rates and money supply.

It is going to take tons of cash to rebuild Japan. If that is to much money and if Japan cashes out a lot of their US savings bonds that could drive interest rates higher for mortgages. That could place downward pressure on house prices.
  • March 15 2011
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Japan had to inject, I heard, 7 Trillion into market already from the disaster.  Great question and I have little doubt this will effect us, our economy in general. I simply do not know how bad or the overall effect. 

Thank you for the good question.
  • March 15 2011
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