Many of our clients want to know, “Are we going into a recession?”🤔 Find out what experts are saying about this hot topic. Check out this short, informative video and let us know how we can be of service to you. Reach out to us:📱206-571-1293 or visit our website:💻www.getsood.com Whether you’re considering buying a home in Auburn & Lake Tapps or selling your home, We’d love to help. Feel free to reach out to Gaurav Sood or Lennaea Sood with #GETSOOD to ask questions, or if you just need some advise about what to do in regards to buying or selling your home in Auburn & Lake Tapps. We are always here to help! #Marketupdate #Auburn #LakeTapps
Here is another question that keeps coming up and we keep getting asked. The question is are we going into a recession? It is important to remember recession does not equal a housing crisis. According to Doug Brien, CEO of Mynd Property Management, stated, “With the exception of two recessions, “the Great Recession from 2007-2009 “and the Gulf War recession from 1990 to ’91, “no other recessions have impacted the U.S. housing market, “according to Freddie Mac Home Price Index data “collected from 1975 to 2018.” Here is an example of a graph from information from core logic that shows just that. Obviously the last crash on the housing market in 2008, saw a devastating decrease in home prices. Because of what was happening back in 2008, in 2008 loans that were rated as D loans were being sold as A loans. Also back then, we had Stated Income Loans where people could just state what they made without proving it and therefore often were not truthful and couldn’t afford the payments. So we had a major default. Also back then homes from one month to the next month, were appraising for 20, 30 or even as high as over $100,000 more than the previously home being sold. That does not make sense and should never have happened. And we have to understand that 2008 is much different than what is happening now. According to David Rosenberg, Chief Economist of Gluskin Sheff and Associates Inc. states “What 9/11 has in common “with what is happening today, “is that the shock has also generated fear “and anxiety among the general public. “People avoided crowds then “as they believed another terrorist attack was coming. “And are acting the same way today to avoid getting sick. “The same part of economy are under pressure. “Airlines, leisure, hospitality, “restaurants, entertainment, “consumer discretionary service in general is under attack.” It is as though all of these services are on pause so our economy has been put on pause as people are sheltering in place. So if we compare this to 9/11 and the Dot-com crash, we see the S&P 500 dropping drastically from September of 2002 until October of 2002. However, at the same time we see an increase in annual home price appreciation ranging from 6.6% to 8.6%. Obviously this is very different from what we saw in 2008. Hey I’m not giving my opinion, I’m just stating what experts are saying and I thought it could be of service to you. Feel free to reach out to me or Lennaea, at GetSood Skyline Properties with any questions or concern. We are always here to help.
