Is The Recession Coming & Will It Impact The Housing Market?

Is The Recession Coming & Will It Impact The Housing Market?


– Hey, everyone! Welcome to another episode
of “Real Talk Real Estate”. Today, I want to talk
to you about the economy and home prices. Last week was a crazy, crazy
week in the equity markets and depending on what
you’re reading out there, there are some very scary headlines. CNBC, “DOW tanks 800 points
in worst day of 2019.” Fox, “Recession coming,
what economists think.” And of course, NPR, “What
economic indicators are telling us “about a potential recession.” These headlines admittedly
can be a little overwhelming. So let me cut to the truth as it relates to the real estate market. The real truth. We are currently in the
longest economic recovery in American history. A recovery will end when we
see an economic slowdown. An economic slowdown can be defined by two consecutive quarters that the gross domestic product slips. This is also the
definition of a recession, when you have the GDP slipping
for two consecutive quarters. So here is the important and key point. A recession is not a housing crisis. In fact, in the last five recessions, only two have had a negative
impact on home prices. The one that had the most impact, 2008, the most recent recession was caused by the housing and mortgage markets, so naturally we saw home
prices hit pretty hard. But, in three of the past five recessions, home prices actually rose and, if we look at the indicators
of any upcoming recessions, they are not actually linked to housing. Rather, any potential
recession is more likely associated with trade
wars and current bumpy geopolitical climates. In other words, do not
let these scary headlines and the thought of recession lead you into believing we are
heading for a housing crisis. Right now, we are actually witnessing an unprecedented time for buyers. The market is supremely opportunistic, and the interest rates are incredibly low. Historically low. We don’t usually see a pairing
of opportunistic prices with low interest rates. So, even if a recession
is forthcoming, as I said, it does not mean the end
of the world for housing. If the recent volatility
of the stock market is making you weak in the knees, consider investing in the
safest market there is. Real estate. If you’re looking for more real content, hit the like button and
subscribe button below. You can follow us on glazerteam.com. You can always find us on
the Insta @theglazerteam. And, of course, Facebook Glazer Team. See you next time.

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