COVID-19 and the forced shutdowns in early 2020 brought the global economy to a standstill. This shift raises some Real Estate questions:
WILL THIS LEAD TO A RECESSION? Back in 2019 the economists were predicting a recession for late 2020 or early 2021. We’ve enjoyed consistent economic growth since the 2008 Recession. The economy is cyclical by nature, so the next recession is always looming.
HAS THE RECESSION ALREADY STARTED? Business closures due to COVID-19 have brought the economy to its knees. With employment uncertainties, people are reluctant to spend money which keeps currency from circulating through the economy.
HOW DOES THIS AFFECT THE REAL ESTATE INDUSTRY? Distancing restrictions and buyer uncertainty will likely impact the housing market. Recessions can see an increase in distressed properties which can create opportunities for real estate investors.
The 2020 Recession has probably already started but, this isn’t necessarily bad for the real estate industry or your investing business. Make sure you’re ready to take advantage of the opportunities that will inevitably be out there.
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