May National Market Update

Dated: May 16 2020

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May National Market Update

When is the economy going to recover?

Here is a question that keeps coming up and I keep getting asked. The question is….When is the economy going to recover? I feel it’s important to look at the facts.  The American economy  it’s like someone hit the pause button. Very different from 2008, the 2008 crash came fast and we had to rebuild the housing and mortgage market.  It was like a tsunami came and wiped out the housing market.  Now we are at a halt, but eventually we will be going back to work.  So it’s a different type of recovery.  Goldman Sacks, JP Morgan and Morgan Stanley are calling for a Rapid V Type of Recovery. 

John Burns Consulting major consulting firm in the Real Estate Industry has studied past pandemics and they state: “Historical analysis showed us that pandemics are usually V-Shaped (sharp recessions that recover quickly enough to provide little damage to home prices, and some very cutting-edge search engine analysis by our information management teams showed the current slowdown is playing out similarly thus far.”   

Also, Harvard Business Review states “It’s worth looking back at history to place the potential impact path of Covid-19 empirically.  In fact, V-shapes monopolize the empirical landscape of prior shocks, including epidemics such as SARS, known as the 1968 H3N2 (“Hong Kong”) flu, 1958 H2N2 known as the (“Asian”) flu, and 1918 Spanish Flu.” 

So in past pandemics we saw V-Shaped patterns.  So yes, it’s a crazy wild ride right now, everyone has been delayed and put on pause.  So experts are anticipating once the pandemic restrictions and people go back to work and still need and want to buy, that the housing market will go back to normal.  Hey, I’m  not giving my opinion, I'm just stating what experts are saying and I thought it could be of service to you.  Feel free to reach out to me with any questions or concerns, I am always here to help.  

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CC Summerfield

I have been a real estate agent here in Ocean Beach for the last 11 years and have lived in and loved this little beach community collectively for 20 years. My passion is helping people and after reti....

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