Strength of the Economy Is Surprising the Experts
We’re currently in the longest economic recovery in U.S. history. That has caused some to ask experts to project when the next economic slowdown (recession) could occur. Two years ago, 67% of the economists surveyed by the Wall Street Journal (WSJ) for the Economic Forecasting Survey predicted we would have a recession no later than the end of this year (2020). The same study done just three months ago showed more than one third of the economists still saw an economic slowdown right around the corner.
The news caused concern among consumers. This is evidenced by a recent survey done by realtor.com that shows 53% of home purchasers (first-time and repeat buyers) currently in the market believe a recession will occur by the end of this year.
Wait! It seems the experts are changing their minds….
Now, in an article earlier this month, the Wall Street Journal (WSJ) revealed only 14.3% of those economists now believe we’re in danger of a recession occurring this year (see graph below):
The WSJ article strongly stated,
“The U.S. expansion, now in its 11th year, will continue through the 2020 presidential election with a healthy labor market backing it up, economists say.”
This optimism regarding the economy was repeated by others as well.
CNBC, quoting Goldman Sachs economists:
“Just months after almost everyone on Wall Street worried that a recession was just around the corner, Goldman Sachs said a downturn is unlikely over the next several years. In fact, the firm’s economists stopped just short of saying that the U.S. economy is recession-proof.”
“When Barron’s gathers some of Wall Street’s best minds—as we do every January for our annual Roundtable—we expect some consensus, some disagreement…But the 10 veteran investors and economists who convened in New York on Jan. 6 at the Barron’s offices agree that there’s almost no chance of a recession this year.”
“The U.S. economy is heading into 2020 at a pace of steady, sustained growth after a series of interest rate cuts and the apparent resolution of two trade-related threats mostly eliminated the risk of a recession.”
Robert A. Dye, Chief Economist at Comerica Bank:
“I expect that the U.S. economy will avoid a recession in 2020.”
Bottom Line
There probably won’t be a recession this year. That’s good news for you, whether you’re looking to buy or sell a home.
Buying a Home Early in Life Can Increase Future Wealth
Buying a Home Early Can Significantly Increase Future Wealth According to an Urban Institute study, homeowners who purchase a house before age 35 are better prepared for retirement at age 60. The good news is, our younger generations are strong believers in...
National Cut Your Energy Costs Day
National Cut Your Energy Costs Day | January 10 2020 Some Highlights: On January 10th of each year, “National Cut Your Energy Costs Day” encourages consumers to reduce their overall energy costs by improving home efficiency. According to Freddie Mac, a typical U.S....
There’s a Long Line of Buyers Waiting for Your House
There’s a Long Line of Buyers Waiting for Your House If you’re following what’s happening in the housing market right now, you know that many people believe the winter months aren’t a good time to sell a home. As realtor.com Senior Economist George Ratiu recently...
How can SRES Help You Plan for Your Future Housing Needs
How can SRES Help You Plan for Your Future Housing Needs? Most of us put time and effort into planning for retirement. That is, we plan for money related issues such as retirement funds. Secondly, people plan for long-term care and life insurance. Deciding on where...
Plus Fifty Today
Do you know where is your market is going? In 2020: More than one-third of the U.S. population reached age 50. 17 million baby boomers (20 percent) were age 60 or older. Generation X moved into middle age and began knocking on the door of age 58 Today demographic...
Spring Real Estate Market is Here Ready or Not?
The New Spring Real Estate Market is Here. Are You Ready? Which month do you think most people who are considering buying a home actually start their search? If you’re like most of us, you probably think the surge happens in the spring, likely in April. Not...
Demand for Smaller Homes is on the rise
Big Demand for Small Homes Movies, tv shows, and celebrities often have us dreaming of owning large homes, but the reality for most people is quite different. Since 2015, the square footage of newly built houses has been shrinking, according to Yahoo Finances. This is...
3 Benefits to Buying Your Dream Home This Year
3 Benefits to Buying Your Dream Home This Year Outside of a strong economy, low unemployment, and higher wages, there are three more great reasons why you may want to consider buying your dream home this year instead of waiting. 1. Buying a Home is a Great Investment...
Short video – Why you should buy a home in 2020
4 Top Renovations for Maximum ROI
Top Renovations for Maximum ROI Some Highlights: If you’re planning on selling your house in 2020, these are the top renovations that will give you the highest Return on your Investment. Regardless of how long you’re planning on staying in your current home, it’s...