Will The Next Recession Affect The Real Estate Industry?

By
Real Estate Broker/Owner with Rummy Dhanoa Real Estate Experts

There has been a lot of talk regarding when the next recession could be, we all remember that the housing crisis in 2008 caused the last recession. Is there a likelihood of that repeating itself?

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 recent report by Zillow Research shed light on a survey conducted by Pulsenomics in 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: That timing concurs with a recent survey of economists by the Wall Street Journal: Here is a graph comparing the opinions of those surveyed by both the Wall Street Journal and Pulsenomics:

Recession DOES NOT Equal Housing Crisis According to the Merriam-Webster Dictionary, a recession is defined as follows: 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 by Pulsenomics, the top three probable triggers for the next recession are:

  • Monetary policy
  • Trade policy
  • 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:

A recession is probably less than two years away. A housing crisis is not.

Reference: https://bit.ly/2Iy5e0g

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