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Is a Recession Here? Yes. Does that Mean a Housing Crash? No. On 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 other indicators. A recession begins when the economy reaches a peak of econom...ic activity and ends when the economy reaches its trough. Between trough and peak, the economy is in an expansion. Everyone realizes that the pandemic shut down the country earlier this year, causing a significant decline in economic activity. 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. The real estate market, however, is in a totally different position than it was then. As Mark Fleming, Chief Economist at First American, explained: 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. Four major differences in today’s real estate market are: 1. Families have large sums of equity in their homes 2. We have a shortage of housing inventory, not an overabundance 3. Irresponsible lending no longer exists 4. Home price appreciation is not out of control We must also realize that a recession does not mean a housing crash will follow. In three of the four previous recessions prior to 2008, home values increased. In the other one, home prices depreciated by only 1.9%. Bottom Line 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. Please contact me if you have any real estate related questions. I’m here to help.

The Benefits of Homeownership May Reach Further Than You Think More than ever, our homes have become an integral part of our lives. Today they are much more than the houses we live in. They’re evolving into our workplaces, schools for our children, and safe havens that provide shelter, stability, and protection for our families through the evolving health crisis. Today, 65.3% of Americans are able to call their homes their own, a rate that has risen to its highest point in 8 ...Continue reading

Housing Market Positioned to Bring Back the Economy All eyes are on the American economy. As it goes, so does the world economy. With states beginning to reopen, the question becomes: which sectors of the economy will drive its recovery? There seems to be a growing consensus that the housing market is positioned to be that driving force, the tailwind that is necessary. Some may question that assertion as they look back on the last recession in 2008 when housing was the anchor... to the economy holding it back from sailing forward. But even then, the overall economy did not begin to recover until the real estate market started to regain its strength. This time, the housing market was in great shape when the virus hit. As Mark Fleming, Chief Economist of First American, recently explained: 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. Fleming is not the only economist who believes this. Last week, Dr. Frank Nothaft, Chief Economist for CoreLogic, (@DrFrankNothaft) tweeted: For the first 6 decades after WWII, the housing sector led the rest of the economy out of each recession. Expect it to do so this time as well. And, Robert Dietz, Chief Economist for the National Association of Home Builders, in an economic update last week explained: As the economy begins a recovery later in 2020, we expect housing to play a leading role. Housing enters this recession underbuilt, not overbuiltBased on demographics and current vacancy rates, the U.S. may have a housing deficit of up to one million units. Bottom Line Every time a home is sold it has a tremendous financial impact on local economies. As the real estate market continues its recovery, it will act as a strong tailwind to the overall national economy. See more

A Day When Americans Can Return to Work Taking a moment to reflect upon what we’ve heard from historical leaders can teach us a lot about getting through the many challenges we face today. We’re all eager for the day when every American can safely return to work. That day is coming. Timing is everything. Patience is essential. Our courage, strength, and unparalleled resilience will get us there.