[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"$f1zwdw31tfaby8":3,"$ffeh0925h8cuz":39,"$f2emv3tus0uf1":43,"$fbwk2pqjjqsc7":47},{"item":4,"previous":27,"next":33},{"id":5,"slug":6,"title":7,"description":8,"excerpt":9,"contentType":10,"featuredImage":11,"bannerImage":9,"body":12,"agentsBottomLine":13,"bodyImage":14,"isInfographic":15,"categories":16,"isVideo":15,"videoThumbnail":9,"videoSource":9,"publishedAt":25,"updatedAt":26},1581,"three-reasons-why-this-is-not-a-housing-crisis","Three Reasons Why This Is Not a Housing Crisis","In times of uncertainty, one of the best things we can do to ease our fears is to educate ourselves with research, facts, and data. Digging into past experiences by reviewing historical trends and understanding the peaks and valleys of what’s come before us is one of the many ways we can confidently evaluate any situation. With concerns of a global recession on everyone’s minds today, it’s important to take an objective look at what has transpired over the years and how the housing market has successfully weathered these storms.","","blog","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2020\u002F03\u002F17165504\u002F20200318-KCM-Share.jpg","In times of uncertainty, one of the best things we can do to ease our fears is to educate ourselves with research, facts, and data. Digging into past experiences by reviewing historical trends and understanding the peaks and valleys of what’s come before us is one of the many ways we can confidently evaluate any situation. With concerns of a global recession on everyone’s minds today, it’s important to take an objective look at what has transpired over the years and how the housing market has successfully weathered these storms.\u003C!--more-->\r\n\u003Ch4>\u003Cstrong>1. The Market Today Is Vastly Different from 2008\u003C\u002Fstrong>\u003C\u002Fh4>\r\nWe all remember 2008. \u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002F2020\u002F03\u002F16\u002F5-simple-graphs-proving-this-is-not-like-the-last-time\u002F\">This is not 2008\u003C\u002Fa>. Today’s market conditions are far from the time when housing was a key factor that triggered a recession. From easy-to-access mortgages to skyrocketing home price appreciation, a surplus of inventory, excessive equity-tapping, and more – we’re not where we were 12 years ago. None of those factors are in play today. Rest assured, \u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002F2019\u002F10\u002F17\u002F3-reasons-this-is-not-the-2008-real-estate-market\u002F\">housing is not a catalyst\u003C\u002Fa> that could spiral us back to that time or place.\r\n\r\nAccording to Danielle Hale, \u003Cem>Chief Economist \u003C\u002Fem>at\u003Cem> Realtor.com\u003C\u002Fem>, if there is a recession:\r\n\u003Cblockquote>\u003Cem>\"It will be different than the Great Recession. Things unraveled pretty quickly, and then the recovery was pretty slow. I would expect this to be milder. There's no dysfunction in the banking system, we don't have many households who are overleveraged with their mortgage payments and are potentially in trouble.\"\u003C\u002Fem>\u003C\u002Fblockquote>\r\nIn addition, the \u003Cem>Goldman Sachs GDP Forecast\u003C\u002Fem> released this week indicates that although there is no growth anticipated immediately, gains are forecasted heading into the second half of this year and getting even stronger in early 2021.\u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2020\u002F03\u002F20200323-MEM-Eng-2-1.jpg\">\u003Cimg class=\"aligncenter wp-image-42024\" src=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2020\u002F03\u002F20200323-MEM-Eng-2-1.jpg\" alt=\"Three Reasons Why This Is Not a Housing Crisis | Simplifying The Market\" width=\"650\" height=\"488\" \u002F>\u003C\u002Fa>Both of these expert sources indicate this is a momentary event in time, not a collapse of the financial industry. It is a drop that will rebound quickly, a stark difference to the crash of 2008 that failed to get back to a sense of normal for almost four years. Although it poses plenty of near-term financial challenges, a potential recession this year is not a repeat of the long-term housing market crash we remember all too well.\r\n\u003Ch4>\u003Cstrong>2. A Recession Does Not Equal a Housing Crisis\u003C\u002Fstrong>\u003C\u002Fh4>\r\nNext, take a look at the \u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002F2019\u002F08\u002F30\u002Fa-recession-does-not-equal-a-housing-crisis-infographic\u002F\">past five recessions\u003C\u002Fa> in U.S. history. Home values actually appreciated in three of them. It is true that they sank by almost 20% during the last recession, but as we’ve identified above, 2008 presented different circumstances. In the four previous recessions, home values depreciated only once (by less than 2%). In the other three, residential real estate values increased by 3.5%, 6.1%, and 6.6% (see below):\u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2020\u002F03\u002F20200318-MEM-Eng-2.jpg\">\u003Cimg class=\"aligncenter wp-image-41961\" src=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2020\u002F03\u002F20200318-MEM-Eng-2.jpg\" alt=\"Three Reasons Why This Is Not a Housing Crisis | Simplifying The Market\" width=\"650\" height=\"366\" \u002F>\u003C\u002Fa>\r\n\u003Ch4>\u003Cstrong>3. We Can Be Confident About What We Know \u003C\u002Fstrong>\u003C\u002Fh4>\r\nConcerns about the global impact COVID-19 will have on the economy are real. And they’re scary, as the health and wellness of our friends, families, and loved ones are high on everyone’s emotional radar.\r\n\r\nAccording to \u003Ca href=\"https:\u002F\u002Fwww.bloomberg.com\u002Fnews\u002Farticles\u002F2020-03-17\u002Feconomists-rush-to-quantify-coming-slump-as-trump-invokes-r-word\">\u003Cem>Bloomberg\u003C\u002Fem>\u003C\u002Fa>,\r\n\u003Cblockquote>\u003Cem>“Several economists made clear that the extent of the economic wreckage will depend on factors such as how long the virus lasts, whether governments will loosen fiscal policy enough and can markets avoid freezing up.”\u003C\u002Fem>\u003C\u002Fblockquote>\r\nThat said, we can be confident that, while we don’t know the exact impact the virus will have on the housing market, we do know that \u003Cstrong>housing isn’t the driver.\u003C\u002Fstrong>\r\n\r\nThe reasons we move – marriage, children, job changes, retirement, etc. – are steadfast parts of life. As noted in a recent piece in the \u003Ca href=\"https:\u002F\u002Fwww.nytimes.com\u002F2020\u002F03\u002F13\u002Fbusiness\u002Fbuying-a-home-coronavirus.html\">\u003Cem>New York Times\u003C\u002Fem>\u003C\u002Fa>\u003Cem>, “Everyone needs someplace to live.” \u003C\u002Fem>That won’t change.\r\n\u003Ch3>\u003Cstrong>Bottom Line\u003C\u002Fstrong>\u003C\u002Fh3>\r\nConcerns about a recession are real, but housing isn’t the driver. If you have questions about what it means for your family’s homebuying or selling plans, let’s connect to discuss your needs.","\r\nConcerns about a recession are real, but housing isn’t the driver. If you have questions about what it means for your family’s homebuying or selling plans, let’s connect to discuss your needs.","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2020\u002F03\u002F20200323-MEM-Eng-2-1.jpg",false,[17,21],{"id":18,"name":19,"slug":20},5,"For Buyers","buyers",{"id":22,"name":23,"slug":24},6,"For Sellers","sellers","2020-03-18T10:00:44Z","2020-03-26T17:59:53Z",{"id":28,"slug":29,"title":30,"featuredImage":31,"publishedAt":32,"contentType":10,"isVideo":15},1580,"two-big-myths-in-the-homebuying-process","Two Big Myths in the Homebuying Process","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2020\u002F03\u002F10141409\u002F20200316-KCM-Share.jpg","2020-03-17T10:00:19Z",{"id":34,"slug":35,"title":36,"featuredImage":37,"publishedAt":38,"contentType":10,"isVideo":15},1582,"are-we-about-to-see-a-new-wave-of-foreclosures","Are We About to See a New Wave of Foreclosures?","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2020\u002F03\u002F18173402\u002F20200319-KCM-Share-1.jpg","2020-03-19T10:00:00Z",{"cover":40,"open":41,"shareSpread":42},"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Cover-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Spread-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Magazine-original.png",{"cover":44,"open":45,"shareSpread":46},"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Sellers-Guide-Cover-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Sellers-Guide-Spread-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Sellers-Guide-Magazine-original.png",[48,52,53,54,58,62,66,70,74,78,82,86,90,94,98,102,106,110,114,118,122,126,130,134,138,142,146,150,154,158],{"id":49,"name":50,"slug":51},1,"Uncategorized","uncategorized",{"id":18,"name":19,"slug":20},{"id":22,"name":23,"slug":24},{"id":55,"name":56,"slug":57},7,"Foreclosures","foreclosures",{"id":59,"name":60,"slug":61},8,"Infographics","infographics",{"id":63,"name":64,"slug":65},9,"Home Prices","home-prices",{"id":67,"name":68,"slug":69},11,"First-Time Buyers","first-time-buyers",{"id":71,"name":72,"slug":73},34,"Senior Market","senior-market",{"id":75,"name":76,"slug":77},35,"Mortgage Rates","mortgage-rates",{"id":79,"name":80,"slug":81},38,"Move-Up","move-up",{"id":83,"name":84,"slug":85},41,"For Sale by Owner","for-sale-by-owner",{"id":87,"name":88,"slug":89},42,"Featured","featured",{"id":91,"name":92,"slug":93},45,"New Construction","new-construction",{"id":95,"name":96,"slug":97},52,"Luxury \u002F Vacation","luxury--vacation",{"id":99,"name":100,"slug":101},53,"Rent vs. Buy","rent-vs-buy",{"id":103,"name":104,"slug":105},80,"Time-sensitive","time-sensitive",{"id":107,"name":108,"slug":109},81,"Outdated","outdated",{"id":111,"name":112,"slug":113},147,"Internal","internal",{"id":115,"name":116,"slug":117},148,"Do Not Autopost","do-not-autopost",{"id":119,"name":120,"slug":121},320,"Inventory","inventory",{"id":123,"name":124,"slug":125},321,"Agent Value","agent-value",{"id":127,"name":128,"slug":129},322,"Affordability","affordability",{"id":131,"name":132,"slug":133},323,"Buying Tips","buying-tips",{"id":135,"name":136,"slug":137},324,"Downsize","downsize",{"id":139,"name":140,"slug":141},325,"Economy","economy",{"id":143,"name":144,"slug":145},326,"Equity","equity",{"id":147,"name":148,"slug":149},327,"Forecasts","forecasts",{"id":151,"name":152,"slug":153},328,"Selling Tips","selling-tips",{"id":155,"name":156,"slug":157},339,"Expired\u002FWithdrawn\u002FCanceled","expiredwithdrawncanceled",{"id":159,"name":160,"slug":161},340,"Price It Right\u002FOverpricing","price-it-rightoverpricing"]