Next Recession in 2020? What Will Be the Impact?
Recession DOES NOT Equal Housing Crisis - According to the Merriam-Webster Dictionary, a recession is defined as follows:
“A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.”
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:
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: “If a recession is to occur, it is unlikely to be caused by housing-related activity, and therefore the housing sector should be one of the leading sources to come out of the recession.”
And U.S. News and World Report agreed: “Fortunately – and hopefully – the history of recessions and current issues that could harm the economy don’t lead many to believe the housing market crash will repeat itself in an upcoming decline.” 👉🏼Bottom Line: A recession is probably less than two years away. A housing crisis is not.
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We had four closings this week!
4194 Fleethaven Rd, Lakewood, 90712
2806 Iroquois Ave, Long Beach, 90815
2144 Vuelta Grande, Long Beach, 90815
2201 Saint Louis Ave Unit 201C, Signal Hill, 90755
To our buyers and sellers, congratulations and thank you for choosing The Rivera Group! For all your real estate needs in Long Beach, Lakewood, Signal Hill, and the surrounding areas, The Rivera Group gets the job done.
The Rivera Group - Eileen Rivera
GE Dean & Associates