When the stock market drops the bond market goes up.  One area does not make an economy.  I would tell him NO!!!

Yes, but unless it stays bad for awhile a ripple effect may not be seen. Real Estate is slower to react to the market then stocks, hence it is a safer investment.

What to say to your seller? We have no crystal ball. They should speak to a financial advisor who can tell them what typically has happened during a market like ours. I would not speculate. Who knows? They might hold you to your answer. I would discuss if they really want or need to sell , and at what price, etc.

We''ve needed a correction for a while now.  The stock market absolutely affects the housing industry in several ways, but the effects won't be known unless there are sustained losses that last long enough for a ripple effect to begin.

Joan,

I would say it is too early to speculate. The US economy has continued to improve this year, all signs are good, and the market moved back up a smidgen.  A

Yes it could but then it might not.  Be careful answering this type of question.  If they had asked, "should I sell my home at this time" in the words of the best trainer in history Floyd Wickman, "I would"

My brother-in-law was a home builder and back before another correction period he had a doctor that was going to buy a large upscale home from him. The market dropped and the doctor lost 30-40% value and decided he couldn't make the move. The doctor felt poor.

Yes it does Joan in many ways. Especially in the second home market. It's not always negative as people seek out Real estate as a more "stable" investment. That is the way it used to be but a lot of folks are gun shy after the last bust. So we just have to wait and see.

I have heard more and more investors buying real estate as they feel it is a safer place for tehir money and investments, 

I have received a couple of calls about investing in Real Estate before the markeet explodes.  Seen as a great investment right now.

I agree, Joan. Global economic instability does matter to the real estate market. Real property can be a "safe haven" for investors when stocks are so volatile, but funds may be tighter for those who suffer big losses in stocks. It's hard to say how we will be impacted.

Did not seem to have much effect.

I am not ready to assume that the stock market is in a downward spiral. It's the overall economy that has an impact on real estate and last I checked, it was doing fine.

It absolutely does have a profound effect And thelending institutions will respond with  a knee-jerk reaction to tighten requirements for loans even further.

Small corrections seldom do.