Around 40% of residents of the United States believes that the economy in the US has taken a downturn, while 17% of Americans thinks that the United States is already under a recession or economic depression, based on the recent poll by Gallup.
As the prices and sales in the industry of real estate are slowly rolling out, investors as well as buyers and sellers are at fear that another recession may soon hit the market, with the last one said to be a consequence of bad mortgages.
The market managed to get back up and retrieve a portion of the general market cap in housing industry with around a decade of rising real estate sales and increasing prices, but the present situation in the market doesn’t look as promising.
Recession Less Likely to Happen Despite the Dropping Sales and Prices?
According to Lisa Sturtevant, the chief economist of Virginia Realtors and housing consultant, recession is less likely to happen although house sales and prices have been experiencing bear trends for quite some time.
Sturtevant further stated in one of her most recent interviews that even if recession does take place, the proportions of the depression should be small, adding that “most people won’t lose their homes”.
A great number of economists believe that the recession will come after all, especially in case the housing market continues at a downward trend, predicting that the recession is more likely to happen at the end of 2019, or the beginning of 2020.
Even if the recession was to happen, according to analysts, this dreadful period won’t last for too long, allowing the market to take an upward turn soon afterward towards a partial recovery.
However, the general opinion states that there won’t be widespread layoffs, although the economists are predicting that fewer job positions will be offered in the course of the next year.
The national unemployment rate is already set low at 4%, however, it appears that the majority of economists are predicting that the rate will grow additionally in the next two years.