Most of us remember very vividly what happened 10 years ago when our beloved US economy crashed to levels not seen since almost 100 years ago. It was a time of distress and trial for most of us. Many people lost houses, property, possessions, their retirement, and even family. The American people remember very well and most are concerned about this scenario repeating in the near future.
Most economists are increasingly predicting an impending US economic recession by the second quarter of 2020. Some are predicting a slowdown, and some are predicting total doom and gloom. Either way, this will affect all of us in the US and all over the world.
The increasing tension between China and the US is making matters worse. The tariffs are affecting everyone, from the business owners that have to sell their products at a higher price in order to cover the additional cost incurred by the tariffs, to the consumers who have to pay higher prices for the products they need.
This does not bode well for the housing market either, given that an increase in the cost of goods sold and purchased means less money left in consumer’s pockets for other things, like saving for their down payment for that new house they have been planning to buy. The economic slowdown will undoubtedly have an effect in housing affordability.
There are many economic indicators that have economists sounding the alarm. One of them is the “Yield Curve Inversion”. This is what happens when the short term 3-month yield curve and the long term 10-year yield curve invert, suggesting that investors are putting more money into the short term bond market more than the the long term.
This suggests their confidence in the economy for the foreseeable future is not good. This yield curve inversion has been a reliable indicator of an impending recession.
There many other factors that suggest tough times ahead. An article by the Express of London, proposes that a slowdown in the GDP of both China and the US will result in a global slowdown leading to a recession.
So what does this mean for homeowners that have been thinking about selling their house but haven’t been able to pull the trigger? It means now is the best time to sell. We are at the top of the market and there is only one way for prices to go and that is down. For homeowners hoping to sell their house now is the time. Thankfully, there are many options for them to sell their house. If the house is in move in ready condition and does not need any repairs or updating, they can list it with a local realtor. If the house needs some repairs or updating, they can contact a real estate investor that specializes in house buying. One of the best in the business, located in Metro Atlanta and buying houses all over the Metro Atlanta area, is B&R Investments and Construction, LLC. They are known for doing business with integrity and always closing on all of their deals.
As we approach a time of uncertainty, it is more important than ever to get connected with the right people, who will be honest and transparent and will steer their customers in the right direction as the economy changes within the next months. What will you do to best prepare for the impending recession?