The Housing Market Isn’t Tanking…Here’s Why
Let’s talk Recession. Will it or won’t it? No doubt you’ve seen plenty of chatter about an incoming economic downturn in recent months, and if you’re still nursing memories from the 2008 housing crisis, I’m sure you’ve been feeling some housing market jitters. But fear not! In this month’s blog, we’re diving into the latest insights from the experts who continue to predict smooth sailing ahead.
Do Experts Predict A Housing Crash?
Short answer? No. Jacob Channel, Senior Economist at LendingTree, has painted a pretty positive picture of the economy’s future, stating, “While things are far from perfect, the economy is probably doing better than people want to give it credit for.”
But no need to only take his word for it. A recent survey by the Wall Street Journal reveals that only 39% of economists foresee a recession occurring within the next year. Still sound like a lot? Well, consider the fact that just a year ago, a much more substantial 61% of those same economists expressed fear for the economy’s future. That’s a huge drop in a year, and things continue to look stable moving forward.
Why You Shouldn’t Be Worried About A Housing Market Crash
So, experts don’t believe we’re due for a market crash. But why? Well, lots of reasons, but one of the most significant is the current unemployment rate. If we rewind back and take a look at 1948 up to now, the average unemployment rate has historically hovered around 5.7%. In the aftermath of the 2008 financial crisis, though, that number skyrocketed to 8.3%. As of January 2024, though, the unemployment rate has been below average at only 3.7%, and leading economists at the Wall Street Journal project the unemployment rate will stay well below 5% over the next three years.
How Is 2024 Different Than 2008?
The data is clear that unemployment isn’t on track to peak the way it did during the 2008 crisis. Of course, any unemployment or job loss is tough on the individuals and families that go through it, we’re not seeing a pattern that would lead to a tsunami of foreclosures that could destabilize the housing market in a big way.
Here’s The Bottom Line
Experts continue to be pretty optimistic about the near future for the economy, and by extension, the housing market. With recession fears subsiding and unemployment rates expected to stay in check below the long-term average, you needn’t lose sleep over a potential housing market crash any time soon. Embark on your house hunting journey unafraid!
Ready to start your journey to homeownership? Call or text me on my cell at 407-848-8042, email me at amy@heartandhomeorlando.com, or submit a wishlist right here on my website to get started!