Housing Market Can Be A Powerful Tool in Economic Recovery
Unlike 2008, this time rather than being one of the major contributing factors in the economic decline, the housing market will be one of the major contributors toward a faster recovery. This is the opinion of many expert economists. According to Mark Fleming, Chief Economist of First American:
“Many still bear scars from the Great Recession and many expect the housing market to follow a similar trajectory in response to the coronavirus outbreak. But, there are distinct differences that indicate the housing market may follow a much different path. While housing led the recession in 2008-2009, this time it may be poised to bring us out of it.”
Fleming is joined by Dr. Frank Nothaft, Chief Economist for CoreLogic:
“For the first 6 decades after WWII, the housing sector led the rest of the economy out of each recession. Expect it to do so this time as well.”
Because housing throughout North Bay counties – including Sonoma County, Marin County, San Francisco and even Napa County – were all being underbuilt as we entered this downturn, we can expect this deficit to be remedied by a greater push to build again. Every time a home is sold it has a tremendous financial impact. As the real estate market continues its recovery, we will experience growth in our North Bay counties.
Considering the Bay area and other northern counties’ real estate holding strong to its values, despite covid-19, with regulations loosening many potential home sellers are starting to become active again. With a large increase of homes for sale, the home buyers are starting to come out again and look. It’s the time for economic recovery and it will be boosted by real estate.