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Sink or Swim: Economic Waves Cannot Capsize a Sturdy Real Estate Boat

If you’re concerned about an impending recession, you are not alone. There has been a lot of talk about a recession in recent years, and many people worry that it would result in a significant increase in unemployment. Some even fear that this spike in unemployment would lead to a wave of foreclosures similar to what occurred 15 years ago.

However, a recent article from the Wall Street Journal reveals that, for the first time in over a year, less than half of economists (48%) believe that a recession will actually happen within the next year. This shift in sentiment indicates a growing optimism about the U.S. economy. If the majority of experts no longer anticipate a recession in the near future, it follows that they also don’t expect a substantial rise in the unemployment rate.

While job losses are undoubtedly devastating for individuals and their families, it is important to consider whether these losses would be significant enough to trigger a housing market crash. Historical data from the Bureau of Labor Statistics and macrotrends indicate that this is unlikely. The current unemployment rate is near all-time lows, and projections suggest that it will remain below the 75-year average.

The Bottom Line

Therefore, it is unlikely that we will see a surge in foreclosures that would severely impact the housing market. Most economists no longer anticipate a recession in the next 12 months, which means that they also do not expect a dramatic increase in the unemployment rate that would lead to a wave of foreclosures and another housing market crash. If you have any questions about how unemployment may affect the housing market, it is advisable to consult with a local expert who can provide further insights.

What To Do

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