The whole world is looking at the current economy closely. The U.S. economy is also under the microscope with states beginning to reopen. Several economists believe that the housing market will be the driving force to help get the U.S. economy back on track.
Luckily the housing market was strong when the COVID-19 pandemic began and will only get stronger as the country begins to open back up. Many are looking at the housing market to be the tailwind to the uptick in the economy.
“Many still bear scars from the Great Recession and may 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”, says Mark Fleming, Chief Economist of First American.
There are other economists who also agree with Fleming. The Chief Economist for CoreLogic, Dr. Frank Nothaft, backs up Flemings’ comments by looking back to history. He recalls that after WWII the housing market led the economy out of the recession the first six decades after the war. Robert Dietz, Chief Economist for the National Association of Home Builders, also agrees with Fleming. The National Association of Home Builders believes that the housing market will play a leading role as the economy recovers. ” Based on demographics and current vacancy rates, the U.S. may have a housing deficit of up to one million units.”
The reports make sense because every time a home is sold it has a huge impact on the local economy. The real estate market is strong and will ” act as a strong tailwind to the overall national economy.”
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