The United States is poised for a recession in 2020. Many economists have predicted this recession to hit the economy in the first quarter of next year. One of the industries that are most vulnerable to a nationwide recession is real estate. The real estate sector in Washington D.C. has been largely stable. A few segments or types of residential properties have witnessed modest growth. Other segments have remained static but there have not been any major downswings. This may no longer be the case if a recession actually hits the real estate sector in Washington D.C.
Evan Roberts, the owner of Dependable Homebuyers, has been speaking about this for a few months now. The Federal Reserve has raised the interest rates on different types of short term loans in the recent past. There have been four revisions and hikes in the last eighteen months. It is expected that the Federal Reserve will raise the rates again, not just once but twice in the remaining months of the year. Such a monetary policy is bound to have a negative effect, not just in the real estate market but several sectors. At a time when most industries are performing well and the national economy is growing steadily with unemployment rates not being a major concern, the monetary policy can be solely blamed for the predicted recession.
Zillow had sponsored a survey and its report has been released recently. The survey interviewed more than one hundred economists, including many who have experience in the real estate sector. Almost half of them said that a recession is highly likely and that it will become evident in the very first quarter of 2020. Roberts says that this will have an immediate chain reaction in the real estate market of Washington D.C. Buyers will keep off from investing. Already buyers are being discouraged from investing in houses due to the high interest rate. Any further hike in the rate will discourage other buyers who may still be interested in their dream home right now. Sellers will find it tougher to liquidate their residential properties. The market is already saturated to an extent. The inventory will grow and the overall scenario for the sector will be gloomy. The environment is surely not in favor of most buyers. Any worsening of the environment will affect investors too. Here's a recent press release they published.
Evan Roberts and his team of experts at Dependable Homebuyers are recommending expedited sale for homeowners who are thinking of liquidating their real estate assets. Recession will affect the sentiments of investors. Negative sentiments can prevailing longer than positive moods so sellers will have a much tougher task at their hand if they try to liquidate after the recession kicks in. There may be distress selling. Some buyers will try to take advantage of a saturated market and compel sellers to agree to very low prices. It is not uncommon for sellers to agree to a net loss when they have to liquidate a property. Dependable Homebuyers is a We Buy Houses company and it can help sellers by purchasing their properties directly for cash. For more information about the company and the services they provide visit https://docs.google.com/a/dependablehomebuyers.com/spreadsheets/d/13SZExSEL_PsyRrh-vX5RKLocRuS9ploh2lxmzS4pzmU/preview.
SOURCE: Press Advantage [Link]
Dependable Homebuyers is a local home buying company in Washington, DC. We buy houses in any condition and any situation. If you want to sell your house fast, give us a call at (202) 503-2783 and we’ll provide you a cash offer within 24 hours.