Economists and analysts know that the country has experienced economic growth for almost a decade. They also know that a recession can’t be too far off. A recentreportbyZillow Researchshed light on a survey conducted byPulsenomicsin which they asked economists, investment strategists and market analysts how they felt about the current housing market. That report revealed the possible timing of the next recession:
“Experts largely expect the next recession to begin in 2020.”
That timing concurs with arecent surveyof economists by theWall Street Journal:
“The economic expansion that began in mid-2009 and already ranks as the second-longest in American history most likely will end in 2020 as the Federal Reserve raises interest rates to cool off an overheating economy, according to forecasters surveyed.”
Here is a graph comparing the opinions of those surveyed by both theWall Street JournalandPulsenomics:
Recession DOES NOT Equal Housing Crisis
According to theMerriam-WebsterDictionary, a recession is defined as follows:
“A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.”
A recession means the economy has slowed down markedly. It does not mean we are experiencing another housing crisis. Obviously, the housing crash of 2008 caused the last recession. However, during the previous five recessions home values appreciated.
According to the experts surveyed byPulsenomics, the top three probable triggers for the next recession are:
A stock market correction
A housing market correction was ranked ninth in probability. Those same experts also projected that home values would continue to appreciate in 2019, 2020, 2021 and 2022.
Others agree that housing will not be impacted like it was a decade ago.
Mark Fleming,First American’s Chief Economist,explained:
“If a recession is to occur, it is unlikely to be caused by housing-related activity, and therefore the housing sector should be one of the leading sources to come out of the recession.”
Having the right real estate agent means having an agent who is committed to helping you buy or sell your home with the highest level of expertise in your local market. This also means helping you understand each step of the buying or selling process. This commitment level has helped us build a remarkable track record of delivering results.
Whether you are an experienced investor or a first time buyer, We can help you in finding the property of your dreams. Please feel free to browse our website or let us guide you every step of the way by calling or emailing to set up an appointment today.
"Paige Whitney is a wonderful agent: she takes the time to understand what you want in a home and has invaluable knowledge about homes and towns in the Phoenix area. I had a great experience working with her and highly recommend her. "