We’re in the midst of the longest economic expansion in U.S. history, and the real estate forecast says there’s still room to grow. A recent survey by the National Association for Business Economics found that experts believe the U.S. economy will remain positive throughout 2020.
Still, given that recessions are a natural (and necessary) part of a business cycle, we know this period of growth will inevitably end. So you may be wondering, how will an eventual recession impact the real estate market?
The U.S. unemployment rate is at a 50-year low, and consumer confidence remains high. In fact, the University of Michigan’s latest Surveys of Consumers found that Americans have their most positive personal finance outlook since 2003.
However, if you follow national news, you’ve probably heard speculation that we could be headed toward a recession. Global trade tensions and a slowdown in the GDP growth rate have sparked volatility in the stock market, leading to economic uncertainty.
Given these differing signals, you may be wondering: How has the real estate market been impacted? Where is it headed? And more importantly, what does it mean for me?
While no one can predict the future with certainty, most experts expect to see modest growth in the U.S. housing market for the remainder of this year and next. Inventory while still tight, has started to creep upward. Mortgage rates will continue to climb, and affordability will remain a major issue in many parts of the country.
So what does that mean for San Diego County home buyers and sellers? If you ask me right now how the market is, I’d say just like our fall weather—cooling. Let’s take a closer look at some of the top indicators.
Rising interest rates have a significant impact on your mortgage payment and your ability to qualify for a loan. Whether you are looking for your first home or your fifth, you are probably going to need a mortgage to purchase it. The infographic below shows what your payment would be as interest rates increase.
