The Week Ahead: Economic Conditions and Real Estate’s Role

first_imgSign up for DS News Daily  Print This Post About Author: Seth Welborn Subscribe The Week Ahead: Nearing the Forbearance Exit 2 days ago On September 4, the Federal Reserve will release its latest Summary of Commentary on Current Economic Conditions by Federal Reserve District, or Beige Book. The Beige Book is published eight times per year, and summarizes key economic conditions by each of the Fed districts. An important factor in economic conditions currently is the risk of a recession.The risk of a recession is on everyone’s mind, both in the U.S. and around the world. Realtor.com notes that Germany is already teetering on the brink of recession and the U.K. is facing unrest related to “Brexit”, while in the U.S., a rapidly escalating trade war with China is increasing fears. However, despite these risks, real estate should be safe, unlike in 2008.”This is going to be a much shorter recession than the last one,” predicts George Ratiu, Senior Economist with realtor.com. “I don’t think the next recession will be a repeat of 2008. The housing market is in a better position.”About 2% of economists, strategists, academics, and policymakers believe a recession will start this year, according to a recent from the National Association for Business Economics. Thirty-eight percent believe one will begin in 2020, while 25% anticipate one starting in 2021. Fourteen percent expect it won’t materialize until after 2021.In the event of a recession, potential buyers holding out for a home price crash may be disappointed. According to realtor.com, there simply aren’t enough homes being built to satisfy buyers, and demand is unlikely to drop off any time soon.Additionally, the anticipation of a recession is likely to make the shortage even worse as potential sellers postpone selling if prices drop. Another risk will be potential layoffs and job shortages, meaning homebuying power will be limited.”If we do go into a recession, there will be layoffs,” says Ali Wolf, Director of Economic Research at Meyers Research. “If you move from a two-income household to a one-income household, it doesn’t change the desire to own. But it does impact the ability.” Tagged with: Economy Week Ahead The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Government, Investment, Market Studies, News Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Economy Week Ahead 2019-08-30 Seth Welborn Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer. Related Articles Previous: Retirees and Household Debt Next: Now Boarding: Understanding Servicer Records Onboarding Procedures Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago August 30, 2019 1,066 Views Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Here’s what else is happening in the Week Ahead:CoreLogic Home Price Insights Report (Sept. 3)Ellie Mae Millennial Tracker (Sept. 4)BLS Employment Date (Sept. 6) Home / Daily Dose / The Week Ahead: Economic Conditions and Real Estate’s Role The Week Ahead: Economic Conditions and Real Estate’s Role Share Savelast_img

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