This episode is about understanding the next recession and what it means for real estate. You will keep hearing the news media outlets (doesn’t matter which one you view) and they will throw around the word ‘recession’ and try to create fear! Don’t listen to them!! Watch this instead and understand why!
Are we coming up on a recession? I’ll let you know!
Hi, I’m Diana Hornes with Atlanta Communities and Hornes Real Estate Group. You may be wondering, are we coming up on a recession? Well I just spent all of last week in California at a real estate conference and I heard from top economist, Steve Harvey, and he owns Keeping Current Matters. He said between now and the election, half the country is going to freak out and think the sky’s going to fall and this is horrible and the economy is going to go be bad and horrible, horrible, horrible… etc.
The other half of the country is going to believe that we are in the single greatest economy in the world and everything is puppies and unicorns. Well, whatever side you fall on is entirely up to you. But in the last five recessions, only two had an impact on housing. One was in 1991 when housing prices fell by 2.1% the other was 2008.
2008… that’s when housing prices dropped about 20%. What triggered that was housing prices and the mortgage prices. In the other three recessions though, think about it, in the other three housing was not even impacted the way it was the other two. Housing went up to about 6%. Which by the way, everyone is predicting another one of those is going to happen again soon.
Especially, the closer we get to the election!
So, want to know why housing appreciated in the other three recessions. Well, I’ll tell you. When people think that the stock market is about to go down or something crazy is going to happen, they pull all their money out and they put it into the safest bet that they can possibly muster up.
And what’s that called my friends? It’s real estate!
Any who, so do I want to sell you a house? Yes. Do I want to list your home? Of course. I mean it’s what I do for a living. But what I mostly want to do right now is talk to you and talk some sense into you!
You’re going to hear the word recession and they’re going to relate it to gloom and doom. And this recession is not going to be what a lot of people are going to remember that happened recently. Please, just know that not all recessions are the same. Real estate economists are saying that the next one won’t be anywhere near what happened in the last one.
Okay? Now that we’ve got that cleared up… Everything’s good, okay? Please don’t go out there into the world freaking out.
I mostly made this video because if you were related to me, my general advice to you right now would be turn off the TV. I don’t care what news channel you listen to, I don’t care. News outlets sell and make their money based on how many people watch oh, and with scare tactics. And they’re going to scare you and think that, “Oh my God, recession.” Let’s not do that, people, let’s be smarter than that! Okay. Just know that recession does not equal housing crisis!