The spinmeisters (A media liaison or spokesperson, charged with presenting the spin for their political side) are busy spreading fear and rumors of a recession once again to strenghten whatever agenda they are promoting. The lastest spin is the prediction of a recession looming around the corner waiting to get us. Of course, they hide behing the cloak of goodness and in the so-called spirit of helping all of us.
Although neither Ron nor I are experts at economics by any means, we are not sensing that a recession is at hand. We are bolstered by our experience in real estate both from observing our clients statistics, and by virtue of having been active in commercial real estate for over 20 years. We understand what it takes to start a business, expand one as well as run it successfully. We are good at predicting trends and watching the market as it evolves.
We also are smart enough to have some of the best financial minds who handle a substantial number of large portfolios in our brain trust. Here is their brief take on the whole scene. The job market is the best it has been in 60 years---which means more people are working, and the salaries are rising at an annual 3% rate. And that means, these people have more money to spend. And there are plenty jobs to be still filled. Our local papers have shown 4 to 6 pages (both sides) filled with jobs both on the executive and management level.
Those who watch the Santa Barbara County real estate market also do not expect a recession to occurr this yearr or in 2020. And many Active Rain members who wrote brilliant posts on this subject have also indicated that their markets are healthy. And, we are seeing that our clients who sell homes in the luxury arena are doing well.
We have gone through two recessions, and in both scenarios we did well, and as a matter of fact, we predicted the last one. What happened then is not happening now.
If you think the spinmeisters are right, take comfort in this fact. Regardless of the economic conditions serious buyers buy real estate and serious sellers sell real estate.
This an entry into Debe Maxwell, CRS September Challenge.