Zillow sponsored a survey wherein over one hundred economists and experts in the real estate industry were consulted and asked about their opinions on what awaits the sector in the next twelve to eighteen months. The quarterly report has been published and it predicts a recession in 2020. The recession is unlikely to be a financial crisis so it is not the same doomsday scenario as what happened a decade ago. The overall economy of the United States may plummet from its modest growth to a slowdown, effectively leading to a negative rate of expansion. As the economy shrinks, if the prediction turns out to be true, then the ripple effects in the real estate sector shall affect sellers, buyers, agents and other associated with the industry in Baltimore.
The housing market in the city has been largely stagnant. Certain property segments and a few neighborhoods have undergone modest growth. The remaining segments and other areas have witnessed very little expansion. Around half of all experts interviewed are of the opinion that the recession may kick in sometime next year. The others believe that a slowdown is likely but are not as worried about a substantial negative growth rate. Those who predict the recession kicking in next year also say that it might be in the very first quarter of the new fiscal calendar. The main reason highlighted by these experts as the cause of this recession is monetary policy.
The real estate industry has been faring modestly over the last ten years. The collapse of the housing market was followed by a slew of measures and people have been careful. Investors have not been adventurous. Developers have been cautiously optimistic. Buyers and sellers have also taken wise decisions about when and what they buy and sell respectively. The upcoming recession can change all that. It is difficult to predict how sellers and buyers will actually respond to the developing scenario. The published report is yet to be circulated widely so the current environment of real estate in Baltimore may get affected as more people are made aware of this impending development.Read the article in full at https://drive.google.com/a/dependablehomebuyers.com/file/d/12ynG8FlZP4yNBa68KtVx3vPMLZbNN8zv/preview.
The good news is that the housing market is not going to be the reason of the predicted downturn. There will be effects of economic slowdown in the housing market but it shall remain largely stable. The Federal Reserve has been taking a few decisions in recent months, many of which have been critiqued extensively by economists and real estate experts. The hiking of the interest rates applicable on mortgage has been criticized. There may be one or two more revisions of the rates and the Federal Reserve may raise the interest further. GPD growth is relatively steady and unemployment is not as much of a problem as it was until a few years ago. The economy is evenly poised with most industries performing well. But the short term interest rates have been raised four times in the last year and a half. Further raising of these rates will slow down the economy. More of Dependable Homebuyers services can be found here.
SOURCE: Press Advantage [Link]
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