Don’t let any recent recession talk stop you from buying or selling a home.
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If you’re thinking of buying or selling a home in the Bay Area, don’t let all the recent chatter of an incoming recession stop you.
First of all, a recession is defined as 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. No, the economy does not stop. No, people do not stop living.
The worst aspect of the current chatter is the fear that if a recession were to come, it would be as bad as the last one back in 2008. That recession was closer to a depression. It was unusually harsh, but most of the fundamentals that were at play then—a massive subprime mortgage market and global financial crisis—do not exist today (or certainly not anywhere vaguely close to those levels).
No, the economy does not stop.
No, people do not stop living.
Much stricter banking regulations are in place now. We tend to remember that which is most recent, but equating all recessions with the last one is unwise and overly pessimistic. The bottom line is, the Bay Area is unique. Investors are prominent here, as is intellectual capital and property. The top engineering students from around the country know that this is the major leagues in terms of technological innovation.
Because people keep moving here and the tech companies keep hiring, our job outlook is unlike any other in the metropolitan area. This trend has created more demand for housing, and we’re more impervious to the rest of the country’s financial lulls. Even after the most recent economic downturns of 2001 and 2008, the real estate investing bounceback was unprecedented compared to the rest of the country.
If you’d like to talk more about this subject or you’d like to start your home buying or selling journey, don’t hesitate to reach out to us. We’d love to help you.