Hi I’m Punam.
And I’m Thuy.
We’re here to answer questions that have been rattling the minds of buyers and sellers all over the Valley.
1. Will an Economic Slowdown Crush the Real Estate market?
2. So, when IS the next recession coming?
According to a survey by the National Association for Business Economics, 10% of economic professionals believe a recession will happen in 2019, 42% believe it will happen in 2020, and 25% think it will happen in 2021.
This raises THE question: Will the real estate market be impacted like it was during the last recession? A recession does not equal a housing crisis. What a recession is, is a period of temporary economic decline in trade and industrial activity in two successive quarters.
During the last recession, prices fell dramatically because the housing market CAUSED the recession. But if we look at the previous 4 recessions, we can see that home values were not negatively impacted.
• In 1980 home values rose 4.5%.
• In 1990 home values fell less than 1%.
• In 2001 home values rose by 4.8%.
According to the Deputy Chief Economist of CoreLogic, Ralph McLaughlin, there is no reason to panic now, even if we are headed for a recession. The housing market is just normalizing. This is a good thing for both buyers and sellers as we move forward.
Let our knowledge of market data turn any uncertainty you have about your real estate options, into good solid decisions. When you hire the right professionals, it IS possible to feel confident about the real estate decisions you make.
Your South Bay Real Estate Agent,