What experts say about whether or not we should fear a recession today.

In the last few years, we've seen some dramatic shifts from a buyer's market to an extreme seller's market and back again. Many people are comparing these times to the Great Recession that we saw 15 years ago, but is there validity in this? 

Home prices have risen quickly, and so have interest rates. However, things have started to taper off in the last few months. For example, interest rates jumped from 3% to 6.5%, but now they’re down to about 6%. This is just the beginning of the differences between today’s market and that of the Great Recession. 

Chief economist for the National Association of Realtors, Lawrence Yun, has collected some data that shows this market is not the same as it was 15 years ago. First, job cuts have dropped exponentially. 15 years ago, there were 8 million job cuts, but now we're not experiencing that as much. Second, there are over 20 million more jobs now. Third, subprime loans were very prevalent years ago, and now there are virtually none of them. Fourth, the number of newly constructed homes being built has changed a lot. In the five years before the Great Recession, 7.65 million new homes were built. However, during the five years that preceded today’s market, there were only 4.6 million built. That means there's not an oversupply of new-construction homes.

“If you are thinking about buying a home, now may be the time.”

These stats clearly show that today’s market is very different from how it was 15 years ago. Then what does all of this mean for you? You should know that today’s market holds a unique opportunity for buyers, as there are fewer in the market, and inventory is rising. This might be one of the only times in the next few months or years when we will experience a little bit of a buyer's market. If you are thinking about buying a home, now may be the time. 

The former Assistant Secretary of Housing David Stevens says this: “So be advised…this may be the one and only window for the next few years to get into a buyer's market. And remember, as the Federal Reserve data shows, home prices only go up and always recover from recessions, no matter how mild or severe. Long-term homeowners should view this market…right now…as a unique buying opportunity.” 

If you are thinking about selling your home or buying a new one, reach out to me. I'd love to have a conversation with you to learn more about your situation and see if now is the right time for you to enter the market. You can call me at (269) 350-5514, or you can email me. I look forward to hearing from you!