04/10/2020
*PLEASE EXCUSE MY TYPOS*
THE unOFFICIAL ECONOMIC OUTLOOK
OF REAL ESTATE
I’ve already looked at enough data to see that economy is NOT in a free fall.
Market corrections happen.
But real estate is now caught up and surpassed 2008 pricing. And lenders were not giving out money hand over fist without documenting last time I checked.... Infact, they want arms and legs now before the ink drys....
From a stand point of looking at the overall markets, facts and data have shown me that the economy needed to take a break..... and now is in consolidation period. Basically mulling out the weak and overleveraged ....it’s a form of economic due process
Basically the price of housing may not grow but it may not shrink. STALEMATE as there are still buyers for a LOW INVENTORY MARKET.
If the inventory is still low....the options are still thin. Then pricing practically balances itself out.
I’m expecting very little deviation from property values
Unless there is panic selling. Sure there could be a few fire sales to raise money, but investors still have cash waiting for these types of moments.
Some have asked me before and the one big difference From our last economic collapse is how administrations handled our “care package” and within a few days of American shutting down, they announced a stimulus.
Few weeks later it’s already approved and people are seeing the benefits.
Lastly....which is my biggest indicator:
ALOT OF PEOPLE thinking that the economy is bad or is falling apart. If everybody was an economists I’d believe everything. Sadly though not many economists hang out on Facebook.
granted....things are 💩 right now but once we get back on track I believe people will be dying to buy ANYTHING in a store.
the unemployment number is also BOGUS AND DOESNT accounts for the people that will be back to work and just needed unemployment for Covid related reasons.
The stimulus also included options for business owners and will probably be somewhat favorable since the govt decided to make the calls to close doors and force unemployment on the public......only people they saved was Wall Street last time which proved to not be enough....and YES Wall Street does effect MAIN STREET, in terms of pensions, years of hard work, savings, lending, all being erased Becuase of mistakes. I hate saying it but when you actually start connecting the dots, if that money disappeared, there would have been rioting and suicides.
SO
by giving immediate stimulus and increasing unemployment wages, with providing employment to 1099 or self employed... the economy is being professionally propped with money that they can print and control.
Anybody’s thoughts here are welcome as I love discussing economic matters.
ULTIMATE Chess.
Momentum is building, there is no need to fear putting your home on the market.
