What Are The Experts Predicting For The U.S. Economy & Housing Market?
Most experts predict a strong and quick V shaped recovery for the U.S. economy by the 3rd & 4th quarters of 2020.
Watch this quick slide show for all the data and stats.
Annual home price appreciation much lower in the last 6 years compared to the 6 years leading to the housing crash in 2007-2008. Mortgage Credit Index was at a high of 868.7 in the 2006-2007 housing bubble compared to 152.1 today. In 2008 we were in a Buyers’ Market with 11 months inventory and today we are in a sellers’ market with less than three months of inventory. Total home equity cashed out in 2005-2007 was $824 billion and in the last three years $232 billion which is close to 72% less. 53.8% of all homes in America have at least 50% equity. American homeowners are sitting on tremendous equity. 37& of all the homes are owned “free and clear” On the unemployment front, there is more depth and less length. It is predicated it will take about 2 years for the unemployment rate to return to pre-crisis levels compared to 9 years in the 2006-2016 Great Recession and 12 years during the Great Depression 1929-1942. Most financial institutions are calling for a V shaped GDP recovery including Goldman Sachs, J.P. Morgan, Morgan Stanley and Wells Fargo with gains in GDP the 3rd & 4th quarters of 2020. Signs of the V shaped recovery are already staring to emerge according to John Normand Head of Cross Asset Fundamental Strategy at J.P. Morgan. PricewasterhouseCoopers Survey of 50 leaders from a cross-section of industries show that most companies estimate it will take 30 days to 3 months for their companies to get back to business as usual.
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