Last weekrealtor.comreleased the results of asurveythat produced three major revelations:
53% of home purchasers (first-time and repeat buyers) currently in the market believe a recession will occur this year or next.
57% believe the next recession will be as bad or worse than 2008.
55% said they would cancel plans to move if a recession occurred.
Since we are currently experiencing the longest-ever economic expansion in American history, there is reason to believe a recession could occur in the not-too-distant future. And, it does make sense that buyers and sellers remember the horrors of 2008 when they hear the word ‚Äúrecession.‚ÄĚ
Ali Wolf,Director of Economic Researchat the real estate consulting firmMeyers Research, addressed this pointin a recent interview:
‚ÄúWith people having PTSD from the last time, they‚Äôre still afraid of buying at the wrong time.‚ÄĚ
Most experts, however, believe if there is a recession, itwill not resemble 2008. This housing market is in no way the same as it was just over a decade ago.
‚ÄúAs we look ahead to the next recession, it's important to recognize how unusual the conditions were that caused the last one, and what's different about the housing market today. Rather than abundant homes, we have a shortage of new home supply. Rather than risky borrowers taking on adjustable-rate mortgages, we have buyers with sterling credit scores taking out predictable 30-year fixed-rate mortgages. The housing market is simply much less risky than it was 15 years ago."
George Ratiu,Senior Economistatrealtor.com, also weighed in on thesubject:
‚ÄúThis is going to be a much shorter recession than the last one, I don't think the next recession will be a repeat of 2008...The housing market is in a better position.‚ÄĚ
In the past 23 years, there have been two national recessions ‚Äď the dot-com crash in 2001 and the Great Recession in 2008. It is true that home values fell 19.7% during the 2008 recession, which was caused by a mortgage meltdown that heavily impacted the housing market. However, while stock prices fell almost 25% in 2001, home valuesappreciated 6.6%. The triggers of the next recession will more closely mirror those from 2001 ‚Äď not those from 2008.
No one can accurately predict when the next recession will occur, but expecting one could possibly take place in the next 18-24 months is understandable. It is, however, important to realize that the impact of a recession on the housing market will in no way resemble 2008.
Author:Phillip Gonzales Phone: 480-540-3911 Dated: September 10th 2019 Views: 86 About Phillip: ...
View our latest blog posts in your RSS reader. Click here to access.
Mojica & Associates Real Estate has over 55 years of combined real estate experience here in the Valley. Concentrating on evolving trends in a rapidly growing market, we specialize in finding the perfect opportunity for first time buyers, families looking to upgrade their home, 2nd home buyers and investors. Whether you are looking for the perfect place to hang your hat or finding qualified buyers to purchase your current property at top market prices, we can get it done for you.
Mojica & Associates Real Estate professes that the only way to best serve our clients‚Äô needs is to continually educate ourselves and our agents on the most current and future market trends. Whether it is cutting edge technology to showcase or find the perfect home, making sure our staff is the most knowledgeable in the Valley on contracts, curre nt laws governing real estate sales, short sales, or simply updating our listings throughout the day, we deliver.
Available to you, our most important client, is a vast network of business professionals dedicated to every facet of the buying or selling experience. We specialize in ‚Äútargeted‚ÄĚ marketing that provides optimal exposure through every forum available in today‚Äôs competitive market.
The American Dream, often depicted as having been achieved with having
"Libby is an excellent realtor who will go to bat for you!!! She is timely, knows the market and will negotiate on your behalf. We had a great experience with her and highly recommend her to anyone looking fr a realtor who WORKS and knows the business