Coming up on today’s episode we’ll cover…
• When is the elusive recession coming?
• Is real estate a safe investment?
• And our gift to you!
Welcome to another episode of our monthly housing market update where we attempt to quickly answer the most common questions we’ve been asked most recently about the housing market.
What’s happening with the prediction for the 2020 recession?
In the US, we’re heading into an election year and that can sometimes make things unpredictable. In previous episodes we’ve mentioned that the recession is predicted to happen in 2020 but market analysts and ecOnomics are now seemingly pushing the recession back. Keep in mind, most experts are saying we’ll most likely not even know we’re in a recession until it’s over, but right now 34% are predicting 2020 for the recession and 43% are predicting 2021 or 2022.
So what’s happening to make the recession be pushed back?
Well, the fall in interest rates had a great deal to do with this. The sharp drop in mortgage rates has reinvigorated the housing recovery after a slowdown in 2018 and early 2019. And we still do not have enough new construction to fill the needs of buyers coming into the market so this shortage of inventory will keep buyers buying through 2020. If housing continues showing the promise of growth, or even a leveling off, this activity has the potential to stimulate the larger economy.
So, from what you’ve just said, it looks like consumers have renewed trust in the real estate market after that horrendous crash in 2008?
As a matter of fact, porch.com just came out with a recent survey showing that Americans choose real estate as the safest investment over savings, gold, US bonds and US stocks. The experts are saying prices are going to continue to go up, and Americans are saying it’s still a safe investment over the next 10 years.
With this being a time of giving and sharing, we think the most important gift we can give you for Christmas and the new year is the gift of our expertise. So, we now have available our Winter Buyer and Seller Guides! Each guide provides tons of helpful advice whether you’re interested in buying or selling in the new year!
If you’re interested in a copy, let us know and we’ll email you one right away!
Thank you to all of you for watching! We hope you enjoyed our market update!