{"id":2660,"date":"2020-06-10T10:00:33","date_gmt":"2020-06-10T10:00:33","guid":{"rendered":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=2660"},"modified":"2020-06-10T10:00:33","modified_gmt":"2020-06-10T10:00:33","slug":"is-a-recession-here-yes-does-that-mean-a-housing-crash-no","status":"publish","type":"post","link":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=2660","title":{"rendered":"Is a Recession Here? Yes. Does that Mean a Housing Crash? No."},"content":{"rendered":"
\n

\"Is<\/p>\n

On Monday, the National Bureau of Economic Research<\/em> (NBER) announced<\/a> that the U.S. economy is officially in a recession. This did not come as a surprise to many, as the Bureau<\/em> defines a recession this way:<\/span><\/p>\n

\n

“A recession is a significant decline in economic activity spread across the economy, normally visible in production, employment, and other indicators. A recession begins when the economy reaches a peak of economic activity and ends when the economy reaches its trough. Between trough and peak, the economy is in an expansion.”<\/em><\/p>\n<\/blockquote>\n

Everyone realizes that the pandemic shut down the country earlier this year, causing a “significant decline in economic activity.”<\/p>\n

Though not surprising, headlines announcing the country is in a recession will cause consumers to remember the devastating impact the last recession had on the housing market just over a decade ago.<\/p>\n

The real estate market, however, is in a totally different position than it was then. As Mark Fleming, Chief Economist<\/em> at First American<\/em>, explained<\/a>:<\/p>\n

\n

“Many still bear scars from the Great Recession and may expect the housing market to follow a similar trajectory in response to the coronavirus outbreak. But, there are distinct differences that indicate the housing market may follow a much different path. While housing led the recession in 2008-2009, this time it may be poised to bring us out of it.”<\/em><\/p>\n<\/blockquote>\n

Four major differences in today’s real estate market are:<\/p>\n

    \n
  1. Families have large sums of equity in their homes<\/a><\/li>\n
  2. We have a shortage of housing inventory<\/a>, not an overabundance<\/li>\n
  3. Irresponsible lending no longer exists<\/a><\/li>\n
  4. Home price appreciation is not out of control<\/a><\/li>\n<\/ol>\n

    We must also realize that a recession does not mean a housing crash is will follow.  In three of the four previous recessions prior to 2008, home values increased<\/a>. In the other one, home prices depreciated by only 1.9%.<\/p>\n

    Bottom Line<\/strong><\/h3>\n

    Yes, we are now officially in a recession. However, unlike 2008, this time the housing industry is in much better shape to weather the storm.<\/p>\n

    Content previously posted on Keeping Current Matters<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

    \"IsOn Monday, the National Bureau of Economic Research (NBER) announced that the U.S. economy is officially in a recession. This did not come as a surprise to many, as the Bureau defines a recession this way: “A recession is a significant decline in economic activity spread across the economy, normally visible in production, employment, and […]<\/div>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"bgseo_title":"","bgseo_description":"","bgseo_robots_index":"","bgseo_robots_follow":"","footnotes":""},"categories":[3,84,85,86],"tags":[],"class_list":["post-2660","post","type-post","status-publish","format-standard","hentry","category-blog","category-for-buyers","category-for-sellers","category-housing-market-updates"],"_links":{"self":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/2660","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2660"}],"version-history":[{"count":0,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/2660\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2660"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2660"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2660"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}