The Nashville property market is headed for a turbulent time if recession hits the sector in early 2020. Many economists have predicted a recession or negative economic growth in the first quarter of next year. Now real estate experts are also joining in and sharing the same prediction. Ever since the Federal Reserve started hiking the rates of interest, there has been widespread speculation that it may trigger a slowdown that could have been totally averted. The monetary policy has been widely criticized but the Federal Reserve does not seem to be in a mood to back down. It has already raised the interest rates four times over the last year and a half. It is expected to raise the interest on short term loans further, at least once if not twice in 2019.
Dependable Homebuyers, a We Buy Houses company in Nashville, has been raising alarms in recent months and warning both buyers and sellers about the ill effects of the monetary policy. Evan Roberts, the owner of the nationwide real estate investment firm, has issued press releases and advisories highlighting how the new interest rates have discouraged buyers and the saturated buyers market is propping up more hurdles than what sellers can bear to deal with. The Nashville real estate market is already sluggish. It is not growing fast enough. Developments are confined to a few locations and certain types of properties. Owners of old houses are finding it increasingly difficult to get closing offers. Any more hikes in the interest rate and the going shall get tougher for sellers. If the recession indeed hits by early 2020, the real estate market in Nashville may be in for more than an upfront shock. Here's a recent press release they published.
The survey conducted by Zillow interviewed more than one hundred economists, many of whom are also experts in real estate. The economists stated that the GDP has been growing steadily, most industries were far more stable than they have been in the last ten years, unemployment rates have been doing down and are at historic lows, there has been a flurry of activities in many sectors and that the country could have done with some sound policy to grow faster. The monetary policy instead has put the brakes on consumer activity. Higher rates discourage people from spending, especially investment. This coupled with the expected recession will have a significant impact on the housing market.
The economists are not predicting a housing market collapse. They are also not anticipating any major ripples shaking the financial sector. But there will be an adverse impact and it is the sellers who will have to endure the slump in 2020. Those who are already struggling to find buyers will have fewer options. Many may consider distress selling, which shall inevitably lead to a net loss for a homeowner turned seller. Evan Roberts of Dependable Homebuyers says that selling before the recession is the wise thing to do right now. Also, selling to an investor instead of looking for buyers in the market will be the more pragmatic option, before and during the recession. Visit https://drive.google.com/a/dependablehomebuyers.com/file/d/19zU8JtsCV15q8_ylRwXgCk8Wd6xKVtHK/preview for more information about the company and the services they provide.
SOURCE: Press Advantage [Link]
Dependable Homebuyers is a local home buying company in Nashville. We buy houses in any condition and any situation. If you want to sell your house fast, give us a call at (615) 257-7774 and we’ll provide you a cash offer within 24 hours.
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