Are you among the 60% of Americans who believe the real estate market is headed for a crash? Let’s dive into some important truths about the housing market. If you’re listening to or reading the headlines, it’s easy to assume that a crash is imminent. However, that’s not the case, and I’m here to explain why.
UNDERSTANDING THE CURRENT MARKET SENTIMENT
A recent Harris Poll revealed that three in five Americans think we’re in a recession, but economic indicators and experts disagree. Basically the housing market remains strong, with a significant deficit in supply driving its stability.
The Reality of Economic Terms
Most important to understand what terms like “recession” and “market crash” really mean. By definition, a recession is a prolonged downturn in economic activity, typically identified by two consecutive quarters of negative GDP growth. We haven’t experienced that. In fact, the past few years have seen positive economic growth.
Hence, A true market crash involves a rapid decline in values of 20% or more. Current conditions just don’t support that scenario.
Expert Opinion
Being that, Economists like Larry Yun from the National Association of Realtors and experts at Zillow, project that while we may see a moderation in appreciation in some markets, a crash is not on the horizon.
What This Means for You
Stay informed and make decisions based on facts, not fear. Whether you’re looking to buy, sell, or simply understand the market better, reach out to a trusted expert.
I’m Jen Blanchard, a trusted real estate agent and team leader of The Blanchard Team at Berkshire Hathaway HomeServices Fox & Roach, Realtors, based in Basking Ridge, New Jersey, Somerset County. Contact me to navigate the real estate market with confidence.
