Lusk Head: QE3 Effect Muted
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|Retail (and other CRE) follows rooftops, but is OC residential poised to lead? We asked USC Lusk Center for Real Estate director Richard Green whether the latest measures by the Fed might stimulate housing even a little. "While QE3 certainly won't hurt the housing market, its short-term effect will likely be limited,” he tells us. The constraint keeping people out of the housing market is absence of equity, and unemployment that prevents potential first-time buyers from accumulating down payments. But lower interest rates will potentially allow households to refi, which will allow them to accumulate equity in their houses faster, Richard says.|