Northwest Suburbs of Chicago

PropertyUp Trusted Real Estate Advisors Video Blog

Get A Free Home Value Report!

Are We Headed for a Recession?

Are We Headed for a Recession?

For those of you who don’t know what a recession is, I have a simple explanation. It’s a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.

In our lifetime, most of us have lived through at least 3 or more of these. It’s a healthy pullback.

Why is everybody making such a big deal about it? If you’ve been watching the news lately, it can be depressing. How many of you have changed your lives because you are in fear of a recession? No matter where I go, people stop and ask me if we are headed for a recession.

What would you do differently if you knew it was going to happen?

Would you take fewer vacations or none at all?

Would you stop shopping or spend less on your clothes?

Would you save more?

Would you eat out less or skip a few meals?

The fear itself is almost a self-fulfilling prophecy. Think about this for a moment. If everybody spends less, we will have a recession.

Job losses are the worst when it comes to a heavy-duty recession. I can recall many of my friends and their husbands losing their jobs in 2008. Is your job recession-proof?

We are currently in a full-fledged Buyers market in Illinois. A big percentage 71% (7 out of 10) of the 780 villages/towns in our state of Illinois have more than 6 months of inventory. This means it would take 6+ months or more to sell all the homes currently on the market in these towns A Buyers market in basic economic terms means more supply and less demand normally leads to reduced home prices.

Mark Fleming, First American’s Chief Economistexplained:

“If a recession is to occur, it is unlikely to be caused by housing-related activity, and therefore the housing sector should be one of the leading sources to come out of the recession.”

And U.S. News and World Report agreed:

“Fortunately – and hopefully – the history of recessions and current issues that could harm the economy don’t lead many to believe the housing market crash will repeat itself in an upcoming decline.”

Bottom Line

A recession is probably less than two years away. A housing crisis is not.

 

Search Chicagoland Real Estate

  • RELATED BLOGS

    RECENT POST

    CATEGORIES

    Buyer Info - Your Buyers Agent

    Events

    Open for Inspection Checklist

    Open House Suggestions

    Open House Tips for Sellers

    Preparing for an Open House

    Questions to Ask Realtor

    Real Estate Agents

    Real Estate Updates per City

    Addison Real Estate

    Algonquin Real Estate

    Antioch Real Estate

    Arlington Heights Real Estate

    Aurora Real Estate

    Barrington Hills Real Estate

    Barrington Real Estate

    Bartlett Real Estate

    Bloomingdale Real Estate

    Bolingbrook Real Estate

    Buffalo Grove Real Estate

    Carol Stream Real Estate

    Carpentersville Real Estate

    Chicago real estate

    Crystal Lake Real Estate

    Deerfield Real Estate

    Des Plaines Real Estate

    Elgin Real Estate

    Elk Grove Village Real Estate

    Fox Lake Real Estate

    Fox River Grove Real Estate

    Glenda Heights Real Estate

    Glendale Heights Real Estate

    Grayslake Real Estate

    Gurnee Real Estate

    Hampshire Real Estate

    Hanover Park Real Estate

    Hickory Hills Real Estate

    Hoffman Estates Real Estate

    Hoffman Real Estate

    Huntley Real Estate

    Inverness Real Estate

    Island Lake Real Estate

    Itasca Real Estate

    Kenwood Chicago Real Estate

    Lake Barrington Real Estate

    Lake Forest Real Estate

    Lake villa Real Estate

    Lake Zurich Real Estate

    Lakemoor Real Estate

    Long Grove Real Estate

    McHendry Real Esate

    McHenry Real Estate

    Mount Prospect Real Estate

    North Barrington Real Estate

    Northbrook Real Estate

    Orland Park Real Estate

    Orland Park Real Estate

    Palatine Real Estate

    Park Ridge Real Estate

    Port Barrington Real Estate

    Ringwood Real Estate

    Riverwoods Real Estate

    Rolling Meadows Real Estate

    Roselle Real Estate

    Schaumburg Real Estate

    Skokie Real Esate

    South Barrington Real Estate

    South Elgin Real Estate

    Stream Wood Real Estate

    Vernon Hills Real Estate

    Waukegan Real Estate

    West Chigago Real Estate

    Wheeling Real Estate

    Wood Dale Real Estate

    Wood stock Real Estate

    Seller Info - List Property for Sale

    Testimonials

    Tips for Open House

    Uncategorized

    Video Blog