According to a recent survey from the Wall Street Journal, the percentage of economists who believe we’ll see a recession in the next 12 months is growing. When surveyed in July 2021, only 12% of economists consulted thought there’d be a recession by now. But this July, when polled, 49% believe we will see a recession in the coming 12 months.

And as more recession talk fills the air, one concern many people have is: should I delay my homeownership plans if there’s a recession? 

Here’s a look at historical data to show what happened in real estate during previous recessions to help prove why you shouldn’t be afraid of what a recession would mean for the housing market today.

A Recession Doesn’t Mean Falling Home Prices

To show that home prices don’t fall every time there’s a recession, it helps to turn to historical data. As the graph below illustrates, looking at the recessions going all the way back to 1980, home prices appreciated in four of the last six recessions. So, historically, when the economy slows down, it doesn’t mean home values will fall.

Most people remember the housing crisis in 2008 (the larger of the two red bars in the graph above) and think another recession would repeat what happened then. But this housing market isn’t about to crash. The fundamentals are very different today than they were in 2008. So, don’t assume we’re heading down the same path.

A Recession Means Falling Mortgage Rates

Research also helps paint the picture of how a recession could impact the cost of financing a home. As the chart below shows, historically, each time the economy slowed down, mortgage rates decreased.

Fortune explains that mortgage rates typically fall during an economic slowdown:

“Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over.”

And while history doesn’t always repeat itself, we can learn from and find comfort in the historical data.

Bottom Line

There’s no doubt everyone remembers what happened in the housing market in 2008. But you don’t need to fear the word recession if you’re planning to buy or sell a home. According to historical data, in most recessions, home price gains have stayed strong, and mortgage rates have declined.

If you’re thinking about buying or selling a home, let’s connect so you have expert advice on what’s happening in the housing market and what that means for your homeownership goals.

Hope everybody has enjoyed theirHoliday weekend! It’s good to be back. I have something to share that is irritating me.. and.. I am going to discuss that in a minute.

But nonetheless, It’s good to be speaking to You and I am extremely grateful for you following my work.

Today, the 10 year treasury Bond yield is at 1.929 percent,

With the 30-year fixed national

Average 4.08% Which is actually a great interest rate,

But is pretty tough with the price of housing.

 Remember to always Look at the PAYMENT,

 and not the COST of the home.

Right now, Buying power is being

Diminished and first-time home

Buyers continue to get priced

Out of the market.

Stock market futures were down big last night, 

and markets are down big today.

All this Russia/Ukraine talk now

That COVID is effectively over,

 I think

Is just a massive arms deal

To keep the cabals and defense

Industrial complex cash flow rolling.

I think the Russian Federation and the Chinese

 Dictatorship Is fed up with NATO, and are 

Going to be playing war games 

For the time being. I think there is

Going to be an event, that triggers

Some sort of financial, economic

Change globally. The only question

Is when?

There is a bone I want to pick

With the boneheads who make

These idiotic decisions, such as

The mortgage giants Fannie & Freddie

Raising lending costs less than six

Months after the cancellation of

A one-half point “adverse market”

Refinance fee. 

These fees are to take effect on April 1,

2022, but unfortunately, lenders are already

Passing these fees on to borrowers already.

This is a complete money grab to the mom
& pop real estate investor, and what a 

Joke this is.

This should really piss you off. It pisses 

Me off. Now, I’ve been told, “Oh, Jordan,

This will be great because it will even

The playing field for first-time home

Buyers because less investors will

Be absorbing these homes”

Well, let me tell you that is

BULLSHIT. A complete crock of

SHIT.  What’s going to happen, in

My opinion, is that this is going to

Make this investors like you and I,

Who only have a few rental properties,

Or may want to invest in one.  You know

Who this is going to benefit? It’s going

To benefit the ultra-wealth who

Will just purchase in cash, which

Is a hedge against inflation, and

Will make it even worse for the middle

Class to build generational wealth

For their families.

Who comes up with this stuff? I

Know for damn sure these cone

Heads in Washington DC are not

For the middle class.  They are not

For you and I.  They are not here to 

Help us create wealth. That’s for damn

Sure, and it’s a damn shame.

As Klaus Schwabb famously said,

“You will own nothing and like it”

This is really upsetting. And the fact 

That they are already charging this 

Fee before the April 1 deadline is

A complete money grab.  As you know,

After 2008, Fannie & Freddie became

GSEs of Government Sponsored Entities,

And have never been released back to 

Public ownership, although it is still

Publicly traded.  This is just a cash cow

Slush fund for the cronies in Washington

D.C.

Ok end rant, but really, it should piss you

Off that people like you and I are always 

Getting screwed, and the real problem

Is that we don’t do anything about it.

On a personal level, I used to meditate quite

Frequently and really good things seemed to

Happen.  I got away from it for a bit but recently started

The past month again. Something I am doing different

Is listening to different frequencies such as music in 528 Hz and

963 Hertz, and let me tell you.. I leave it on low volume

When I sleep.  I get up earlier, I feel so great and

rejuvenated. I feel like I can accomplish

So much. My body feels good. 

My back pain feels like it’s gone when I do this.

 I have nothing but good

Things to say about this practice, and thought

I should share that with you.

That’s it for today, I have a listing appointment

To prepare for but I am so grateful for all of you

Being here, my clients, my friends and family

Who support our business and work.

IF there is anything I can do for you,

Feel free to reach out.

Make sure to leave a comment, like the

Video and subscribe to this channel

Because I am going to give it to you

Straight, how I see it, in my opinion. 

IN other news, the magic of Disney

Continues to be bold.  They are going to

Be building residential communities

With condominiums and single family

Homes. The first community is 

Planned for Ranch Mirage in California’s

Coachella Valley, and I will be discussing

This and a new construction update by the NJ General Contractors on my next video.

’til next time.

You asked, I answered: How to monetize raw land through short-term rental sites like AirBNB, VRBO and HipCamp. Also, I give a national market update and we talk about the manipulated jobs numbers.

If one of the questions you’re asking yourself is, “Should I sell my house this year?” consumer sentiment about selling today should boost your confidence in the right direction. Even with the current health crisis that continues to challenge our nation, Americans still feel good about selling a house. Here’s why.

According to the latest Home Purchase Sentiment Index from Fannie Mae, 57% of consumer respondents to their survey indicate now is a good time to buy a home, while 59% feel it’s a good time to sell one:

“The percentage of respondents who say it is a good time to sell a home remained the same at 59%, while the percentage who say it’s a bad time to sell decreased from 35% to 33%. As a result, the net share of those who say it is a good time to sell increased 2 percentage points month over month.”

As you can see, many still believe that, despite everything going on in the world, it is still a good time to sell a house.

Why is now a good time to sell?

There simply are not enough homes available to meet today’s buyer demand, and they’re selling just as quickly as they’re coming to the market. According to the National Association of Realtors (NAR), unsold inventory available today sits at a 2.3-month supply at the current sales pace, which is down from a 2.5-month supply from the previous month. This record-low inventory is not even half of what we need for a normal or neutral housing market, which should have a 6.0-month supply of unsold inventory to balance out.

With so few homes available for buyers to choose from, we’re in a true sellers’ market. Homeowners ready to make a move right now have the opportunity to negotiate the best possible contracts with buyers who are feeling the pull of intense competition when it comes to finding their dream home. Lawrence Yun, Chief Economist for NAR, notes how quickly homes are selling right now, further confirming the benefits to sellers this season:

“The market is incredibly swift this winter with the listed homes going under contract on average at less than a month due to a backlog of buyers wanting to take advantage of record-low mortgage rates.”

However, this sweet spot for sellers won’t last forever. As more homes are listed this year, this tip toward sellers may start to wane. According to Danielle Hale, Chief Economist at realtor.com, more choices for buyers are on the not-too-distant horizon:

“The bright spot for buyers is that more homes are likely to become available in the last six months of 2021. That should give folks more options to choose from and take away some of their urgency. With a larger selection, buyers may not be forced to make a decision in mere hours and will have more time to make up their minds.”

Bottom Line

If you’re ready to make a move, you can feel good about the current sentiment in the market and the advantageous conditions for today’s sellers. Let’s connect today to determine the best next step when it comes to selling your house this year.

Home ownership has always been the first rung on the ladder leading to household wealth. As Freddie Mac recently posted:

“Home ownership has cemented its role as part of the American Dream, providing families with a place that is their own and an avenue for building wealth over time. This ‘wealth’ is built, in large part, through the creation of equity…Building equity through your monthly principal payments and appreciation is a critical part of home ownership that can help you create financial stability.”

Home equity is the difference between the current market value of your house and the amount you currently owe on your mortgage. To estimate your equity, subtract your mortgage balance from the market value of your home.

You can find what you owe on your mortgage by looking at your last monthly statement or by contacting your lender. If you need help determining the current market value of your home, contact a local real estate professional.

Is home ownership truly a better path to wealth than renting?

Some argue that renting eliminates the cost of property taxes and home repairs. Every potential renter must realize that all the expenses the landlord incurs (property taxes, repairs, insurance, etc.) are already baked into the rent payment – along with a profit margin. You don’t save money by renting.

As proof of this, First American broke down the net worth of home owners and renters by income categories. Here are their findings:Only one income category ($127-192K) has a higher net worth for renters over home owners. Every other category shows that being a homeowner leads to greater accumulated wealth.

According to the latest Homeowner Equity Insights Report from CoreLogic, the average homeowner gained $17,000 in equity in just the last year. Here’s a breakdown of the year-over-year equity gain by state:

When can you cash in on your housing wealth?

Your home equity is part of your total wealth as a homeowner. The two most common ways home owners can leverage their wealth are:

• Selling
• Refinancing

Selling: When you decide to sell your home, the equity you’ve built over time will come back to you in the sale. For example, if you paid off your $200,000 mortgage and sold your home for $350,000, you would receive $150,000 after closing.

Refinancing: You can refinance your current mortgage and take out some of the equity you have accumulated. With today’s historically low mortgage rates, you may be able to take out substantial cash and keep your monthly payment the same. Thankfully, home owners today are doing this responsibly and not repeating the same mistakes made in 2006-2008 when some cashed out their entire equity to purchase luxury items like new cars, lavish vacations, etc.

How can these options help home owners?

During these difficult times, many households are struggling with their housing expenses. Home owners, because of their equity, have better alternatives. Odeta Kushi, Deputy Chief Economist at First American, recently explained that home owners financially impacted by the pandemic will not necessarily be faced with foreclosure:

“The foreclosure process is based on two steps. First, the homeowner suffers an adverse economic shock…leading to the homeowner becoming delinquent on their mortgage. However, delinquency by itself is not enough to send a mortgage into foreclosure. With enough equity, a homeowner has the option of selling their home, or tapping into their equity through a refinance, to help weather the economic shock.”

What might the future bring?

Most experts are calling for home prices to continue appreciating going forward. The Home Price Expectation Survey, a survey of a national panel of over one hundred economists, real estate experts, and investment & market strategists, indicates appreciation will continue for at least the next five years. Using their annual projections, the graph below shows the equity build-up a purchaser would potentially earn by buying a $300,000 home this January:

Bottom Line

Home equity, for most Americans, is the quickest way to build household wealth. That wealth gives home owners more options during good times and in difficult situations.