Recession? Yes. Housing Crash? No.
Are we in a recession yet? We very well may be, yet it's not really a surprise considering over 90% of Americans are now under a stay at home order, including us Michiganders.
The 2008 recession is the one you probably remember best which has led some people to fear we are going through the same thing all over again.
While we are likely in a recession, the big difference today is that this time housing is likely to be a big player in pulling us out of the recession, it's NOT what has led us into it.
According to John Burns, a leading consultant who specializes in housing market analytics:
“Last time housing led the recession…This time it’s poised to bring us out. This is the Great Recession for leisure, hospitality, trade and transportation in that this recession will feel as bad as the Great Recession did to housing.”
He also shared that recessions caused by a health crisis like we are currently facing typically do not significantly impact home values.
This type of recession is called a V-shaped recession which is a sharp downward trend followed by a sharp recovery. Essentially the recovery happens so quickly that home prices don't have time to take a hit.
Rest assured friends, even though we are experiencing a decline in the economy as a whole, housing is doing just fine and all signs are pointing to a quick recovery.
Any questions? Shoot me a message or comment below.
*info and stats provided courtesy of @keepingcurrentmatters, leading experts in regards to housing analytics.