Recession?

The media may not have announced it yet, but if you’ve been paying attention, you know the long-forecasted recession is already upon us. Maybe after the summer spending has settled it will start showing up in the headlines – but the signs are there today. I’ve spoken with local builders and investors as well as my old subcontractor contacts. New construction is down by almost 80% in some areas. While that may seem stark and unsettling, this means your existing home is even more valuable – for now. As the recession takes effect, there will be less home buyers as people get laid off or their incomes get reduced. So, if you are planning to sell, do it before the recession hits and the buyer pool dries up.

There is some good news. In 8 of the last 9 recessions since 1970, home prices actually increased. Only in 2008 did prices drop. And, you’ll recall that it was the housing bubble itself that caused that recession.