Are you a market follower? If you are, you know the bond curve inverted this month. If you look at the last 40 years, you will also know that 12-18 months following inversion, a recession occurs. So, that begs the question, what will August 2020 to February 2021 look like (economically)?
(here is a great video to explain the inverted curve for those interested).
The 2008 recession was due largely to the housing crash & the common practice of having 3 or 5 year arm mortgages. When the arm portion was up, rather than having a locked in interest rate, it became variable. This resulted in people not having the cash flow to make payments.
This recession is being attributed to trade policy, geopolitical crisis and / or stock market correction.
At least this next potential recession is not being caused by the housing market. But how will a potential recession impact the real estate market?
Houses will be on the market longer, with less bidding wars. This means its becoming a buyers market once again.
Maybe the inverted curve will be wrong. Stay tuned....and its an election year.
Hi, I am Summer, real estate agent in NE Iowa. This blog is about life, of which Real Estate is a part of. Happy reading!