{"id":851,"date":"2020-06-10T15:24:02","date_gmt":"2020-06-10T15:24:02","guid":{"rendered":"http:\/\/phphouses.com\/blog\/?p=851"},"modified":"2021-02-03T16:35:14","modified_gmt":"2021-02-03T16:35:14","slug":"recession-yes-mean-housing-crash-no","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/recession-yes-mean-housing-crash-no\/","title":{"rendered":"Is a Recession Here? Yes. Does that Mean a Housing Crash? No."},"content":{"rendered":"
\"\"

Is a Recession Here? Yes. Does that Mean a Housing Crash? No.<\/p><\/div>\n

On Monday, the\u00a0National Bureau of Economic Research<\/em>\u00a0(NBER)\u00a0announced<\/a> that the U.S. economy is officially in a recession. This did not come as a surprise to many and people may thought it could lead to a housing crash, as the Bureau<\/em>\u00a0defines a recession this way:<\/p>\n

\u201cA 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.\u201d<\/em><\/p><\/blockquote>\n

Everyone realizes that the pandemic shut down the country earlier this year, causing a \u201csignificant decline in economic activity.\u201d<\/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,\u00a0Chief Economist<\/em>\u00a0at\u00a0First American<\/em>,\u00a0explained<\/a>:<\/p>\n

\u201cMany 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.\u201d<\/em><\/p><\/blockquote>\n

Four major differences in today\u2019s real estate market are:<\/p>\n

    \n
  1. Families have\u00a0large sums of equity in their homes<\/a><\/li>\n
  2. We have\u00a0a shortage of housing inventory<\/a>, not an overabundance<\/li>\n
  3. Irresponsible lending\u00a0no longer exists<\/a><\/li>\n
  4. Home price appreciation is\u00a0not out of control<\/a><\/li>\n<\/ol>\n

    We must also realize that a recession does not mean a housing crash will follow. \u00a0In three of the four previous recessions prior to 2008,\u00a0home 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

     <\/p>\n

    Contact us:<\/strong>
    \nPHP Houses
    \n142 W Lakeview Ave
    \nUnit 1030
    \nLake Mary, FL 32746
    \nPh:\u00a0(407) 519-0719<\/span>
    \nFax:\u00a0(407) 205-1951<\/span>
    \nemail:\u00a0info@phphouses.com<\/p>\n

    Let\u2019s Connect:<\/strong>
    \n    Facebook<\/a>
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    THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

    On Monday, the\u00a0National Bureau of Economic Research\u00a0(NBER)\u00a0announced that the U.S. economy is officially in a recession. This did not come as a surprise to many and people may thought it could lead to a housing crash, as the Bureau\u00a0defines a recession this way: \u201cA recession is a significant decline in economic activity spread across the… Finish Reading Is a Recession Here? Yes. Does that Mean a Housing Crash? No.<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[69],"tags":[15,123,125,132,18,91,52,9,49,205,42,23,63,20,48,13,94,28,47,19],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/851"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=851"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/851\/revisions"}],"predecessor-version":[{"id":853,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/851\/revisions\/853"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=851"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=851"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=851"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}