Are we heading into a recession and how is this time different than 2008?

WOW!!! Things are certainly crazy in our world right now. What does it all mean? While I of course do not have all of the answers, I thought now would be a good time to take a look at where things are at, and how they are affecting our real estate market short and long term.

Our economy has been on an upswing for over 10 years. Something we have really never seen before. So, it makes sense it needs to cool off a little bit. No one could foresee the COVID-19 Virus coming or know the effects it would have. We are now in a wait and see situation. When you look at everything though, real estate is still going to be a great place to put your money.

We still have a shortage of listing inventory. Interest rates are the lowest they have EVER BEEN since mortgages have been given. Buyers are still looking for properties that are not available. There are more and more qualified Buyers sitting on the sidelines looking for a property to buy. The stock market is extremely volatile, so investors are looking for a safe place to put their money.

This is not the recession of 2008. This is a normal correction taking place. The Fed is putting money into Mortgage Backed Securities, so banks and lenders will have more liquidity and more ability to be a part of the solution. This was not the case in 2008. The lenders were the cause. They were not a part of the solution.

Here is the message we as realtors need to get out to the general public. Interest rates are low. They are going to be low for a long time. Buyers take your time. Find the house you want and know you want to live in for a few years. Sellers put your home on the market. If you are concerned you are going to overpay for the next house you are buying, rest in the comfort you are getting a great rate. Also know this shortage of inventory is here to stay for at least 7-10 years. Appreciation of real estate is going to happen for a while.

We are without a doubt going through a time of huge uncertainty and something not seen before in our lifetime. This is not the time to panic and let fear control our responses. Make sure the foundation of what you are investing in is solid. We cannot control everything that happens around us, but we can control ourselves. The fundamentals of real estate still hold true. We still have a supply and demand issue. We still have lenders ready and willing to lend money (It may take them a little longer than normal, but they will still get it done). Interest rates are still at an all-time low and there are no indications they will be heading up any time soon. The stock market is on shaky ground. All of these factors add up to show us real estate still makes sense.