With the unprecedented pandemic and states starting to reopen, all focus is on the American Economy. The major question is what sectors of the economy will contribute and drive its recovery? The great news is that many experts agree that the housing market will drive the economy to recovery.
In the 2008 recession, the housing market was holding the economy back from recovery. It wasn't until real estate strengthened that the economy recovered. This time things are much different. The housing market is strong.
As Mark Fleming, Chief Economist of First American, said:
“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.”
Dr. Frank Nothaft, Chief Economist for CoreLogic, stated on Twitter:
“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.”
Robert Dietz, Chief Economist for the National Association of Home Builders, explained:
“As the economy begins a recovery later in 2020, we expect housing to play a leading role. Housing enters this recession underbuilt, not overbuilt…Based on demographics and current vacancy rates, the U.S. may have a housing deficit of up to one million units.”
Real estate is a major player in the economy. As states begin to reopen and the market picks up where it left off, the economy will begin its recovery. If you are thinking of buying or selling, now is an excellent time. Call the experts at Prestige Waterfront Realty at 954-830-7000 or email Tegov@AskPWR.com. We specialize in South Florida and can help you with all your real estate needs.