There’s been a lot of recession talk over the past couple of years, which has caused some people to think we’re headed for a repeat of what we saw back in 2008. But the latest projections confirm why that isn’t going to happen.
The overall economy is pretty good. Not fantastic, but better than many are giving it credit for. There are a few economists predicting a recession in the next year, but they are in the minority. In fact, most experts don’t believe there will be a recession in the next 12 months. A major reason why is the current unemployment rate. When you look at historical data, it’s pretty clear that the unemployment rate today is still relatively low.
Will the unemployment rate go up? Unfortunately, it probably will, but most economists don’t expect the unemployment rate to get anywhere close to the rate that we saw when the market last crashed (over 8%). Projections currently show that the unemployment rate will continue to stay under the 75-year average. Translation: well below the percentage of people who would have to lose their jobs to cause enough foreclosures to have a significant impact on the housing market.
Another factor that I see is that we are still “undersupplied” on available housing inventory (there are more people who want to buy than want to sell). For a crash to occur, the supply would have to far exceed the demand, and there isn’t anything foreseeable that is going to make that happen. Current market conditions are good, and we are enjoying an appreciating market. That’s GOOD news for both current and prospective homeowners.
If you are thinking of selling your current home, or looking for a home to buy, it’s important to know the facts and your options. Call me today to get the information you need.
Laura Harbison, ABR, AHWD, BPOR, BS, CDPE, CRS, DRB, GRI, PSA, RSPS, SRES
Broker/Owner REALTY EXECUTIVES SOUTHERN NEVADA PROPERTIES
License NumbersB.0026537LLCPM.0164922.BKR