According to experts, this year marked the longest economic expansion in American history. In other words, there is no other period in U.S. history that can compare to this one. The abnormal growth leads some forecasters to claim that there is a recession on the horizon and that it will likely strike in 2020. Let us take a look at a few facts related to the aforementioned hypothesis and try to understand what effects a recession might have on the national real estate market.

Real Estate Won’t Cause the Recession

Distortions in the real estate market contributed to the Great Recession of 2008. Numerous mortgages were granted to people who could not afford them, and the debt was sold hither and yon. When the mortgage holders went into default, the housing bubble popped.

This time around, a recession is much more likely to arise from another economic source. Housing will likely not be the cause. However, according to experts, a recession can still affect the housing market. The housing market crash would simply be a symptom of the larger issue and not the cause.

Stocks or Global Trade Are More Likely to Cause Recession

The latest economic expansion has taken place (largely on the backs of tech and energy stocks). However, the tech stocks are likely to suffer a slowdown, as industry analysts tend to think that the share prices have outpaced the actual value of the shares. In the event that stocks or global trade experience a slowdown, there will be less economic confidence, and housing prices will likely fall.

A 2020 Housing Market Crash Would Be Regionally Felt

An upcoming market crash would not be felt equally in all places. Regions where housing prices are extremely high, such as those with high populations and urban job centers, will likely see their prices fall sharply. However, areas with moderate market activity will probably not see such a sharp decline.

Even in housing crash situations, homes can still find buyers. Sometimes crashes are the best times to purchase houses, as the prices are low during those times. Whatever the future of the economy holds, Propy’s Transaction Management Platform will be here to save homebuyers time and money on its secure digital platform. If the crash comes, Propy’s business plan will help those in need.


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