This week our monthly residential real estate updates continue with a new piece from Kay Bates, residential real estate broker, on the continued recession concerns.
It’s The End of Summer and The Rumblings of a Recession Looming
What is considered a Recession? A recession is a significant, widespread, and prolonged downturn in economic activity. Because recessions often last six months or more, one popular rule of thumb is that two consecutive quarters of decline in a country's Gross Domestic Product (GDP) constitute a recession.
Per Forbes, “So much of the current sentiment and news coverage doing the rounds is highlighting the risk of an upcoming recession. The economic data being released is so far refusing to give in to this pressure. While we have seen two consecutive
quarters of negative economic GDP growth, the National Bureau of Economic Research (NBER) has held off on calling the current climate a recession. This is most likely down to the fact that there are many other data points that aren’t looking so
Believe it or not, the housing market is still active, however we are experiencing a slowdown in the number of sales.
The data below illustrate the activity numbers through August 2022 and compares the data to August 2021 for Single family homes.
- In 92025 Home Prices are up 13.1% for 2022
- In 92026 Home Prices are up 15.0% for 2022
- In 92027 Home Prices are up 16.4% for 2022
- In 92029 Home Prices are up 20.1% for 2022
While housing prices have remained strong over the past year, the level of activity has fallen for eight out of the past nine months. The National Realtors Association commented that this latest report could show that the slowdown of activity may have hit bottom.
The one thing I know is that numbers never lie, and, they don’t tell the whole story either.
Sincerely, Kay Bates