How Might The Recession Impact Real Estate on the Central Ridge?
By: David Collins REALTOR ERA American 352-422-5297
Hello Central Ridger’s. You may know me from my monthly Central Ridge Postcard and being very active here on the Ridge. I have signed up as the Real Estate Expert on Next Door and will be posting a few Real Estate Blogs each month. Since I focus on what is going on in the neighborhoods with my post card, I am going to take this post to discuss a bit more of how a national recession could affect our market.
I have mentioned in my postcard that I am bullish on the Central Ridge moving forward and the biggest reasons are affordability, uniqueness of neighborhoods, and an easy going lifestyle. Our primary prospective buyer is the active adult who is not looking for employment, which is a good thing. Even though we have a lot going for us on The Ridge, the state/national housing market does have an effect on us in the fact that most of our buyers come from other states and if their markets are effected by a downturn, our market will be affected.
With that being said, most everyone in the news is discussing when the next recession is coming. There are a lot of different opinions on the matter but I recently saw this chart about what as happened in the last 5 recessions. As you can see, 3 out of the 5, housing went up in value while 2 it went down. On a side note, I find it incredibly interesting that housing went up in the 1980/81 recession when interest rates were in the teens. We now have crazy low rates and when we had a slight increase earlier this year, the national market slowed. I will also mention that the boom and the bust of 2006-2012 is a once in a lifetime occurrence and even if our housing went down in the next recession like 1991, it would not be catastrophic like 06. The reasons are simple, speculation in the marketplace is non existent and the banks have been very prudent with their lending practices. Most homes being sold are being lived in by the buyer or if it is an investment property, it is being paid for with cash. These two factors were not the norm in 2006.
I can go on and on but the bottom line is that, even if we do have an economic downturn, the Central Ridge should hold its value without depreciating like 2008 and if history repeats itself, we could still see appreciation in the market.
If you are looking to sell, you want to net the most money, in the least amount of time, with the least amount of hassle. For this to happen, you need a PROFESSIONAL to navigate the process. That professional is me, DAVID COLLINS. I will market your home like no one else, I will return every phone call, and I will navigate you through the entire process with the least amount of stress. If you are thinking about selling, call me today. 352-422-5297