As we get back to work and the financial landscape of the country begins to turn around, many experts agree that real estate has the potential to lead the way in the recovery process.
Why Real Estate?
One of the big reasons why housing has the potential to be such a driving force is the significant impact it has on the local economy.
This impact is particularly strong when a newly constructed home is built and sold. According to a recent study by the National Association of Realtors (NAR), the average new home sale has a total economic impact of $88,416. As outlined in the graphic above, this is a combination of income generated from real estate industries, expenditures, and new home construction.
Robert Dietz, Chief Economist and Senior Vice President for Economics and Housing Policy of the National Association of Home Builders (NAHB) says: “Overall, the data lend evidence to the NAHB forecast that housing will be a leading sector in an eventual economic recovery.”
When Will The Economy Pick Back Up?
According to the latest Wall Street Journal Economic Forecasting Survey, which polls more than 60 economists on a monthly basis, 85.3% believe a recovery will begin in the second half of 2020 (see graph below):
In addition, five of the major financial institutions are also forecasting positive GDP in the second half of the year. Today, four of the five expect a recovery to begin in the third quarter of 2020, and all five agree a recovery should start by the fourth quarter (see graph below):
For more information on current real estate market conditions or how to navigate buying or selling a home under COVID-19 safety protocol, contact us!