Planning to sell your home? Top Economists and housing experts believe that now is the best time to sell before the country enters the forecasted recession sometime in 2020.
Earlier this month, The Wall Street Journal carried out a survey from top economists in the country including those from the private-sector, and around 59 percent from these private-sector economists forecast a 2020 upcoming recession. One chief economist at Bank of the West, Scott Anderson explained that by historical standards, the current economic expansion is getting longer and more late-cycle signs are emerging, this economic expansion is currently the second-longest in U.S history which started in 2009.
But, this economic growth will likely end in 2020 according to the recent survey results from these economists and experts.
Similar predictions with the ones carried out by The Wall Street Journal, research firm Pulsenomics and Real-estate website Zillow also conducted surveys among economists and real estate experts and about half of them have the same prediction that the next recession will begin sometime in the first quarter of 2020.
While the last economic recession was prompted by the housing market, the next nationwide economic downturn predicted to begin this 2020 will not likely to be caused by another housing market crisis as explained by a top economist from Zillow Aaron Terrazas. Although “Housing affordability” is a critical issue across the country, it is unlikely that the housing market will be a major player that will prompt the upcoming predicted recession.
Experts are looking into probable key concerns that will cause the upcoming predicted recession and mostly agreed that monetary policy will be the deciding factor for this. Economists and housing trade experts also believed that the Federal Reserve could cause slower growth if it raises short-term interest rates too fast. Other issues raised are trade policy, a stock market correction and an unexpected spike in inflation.
However, even if the housing market will not be a central cause for the next recession, any type of economic downturn, will have an impact in all industry across the country, this includes the real estate.
If the economic recession will have widespread job losses, these will impact and spillover to the housing market as Terrazas explained. He also added that the economic recession’s impact on the housing market will vary depending on the depth, severity, and length of the next recession. It can even impact regionally and locally depending on the downturn of this recession per region.
The same panel that predicted the upcoming recession also believed that although the housing market will be moderately affected, there are cities with real-estate values such as Miami, Los Angeles, San Francisco, San Diego, New York and Seattle to be most likely affected.
Meanwhile, for this year 2018, the housing market will continue to increase another 5.5 % of home values to a median value of $220,800, according to the results of the survey from 100 different real estate experts as carried out by Zillow this year.
Passy, Jacob. “Thinking of Selling Your Home? Do It before 2020, Economists Say.” Yahoo! Finance, Yahoo!, 28 May 2018, finance.yahoo.com/m/b89b2c57-8ea6-36ae-9467-c7c0fa9b704d/thinking-of-selling-your.html?.tsrc=applewf.