If you are ready to start building a home in Northern Virginia, you are likely monitoring the news about a recession. Smart move. Just recently some experts have indicated that an economic downturn might already be in full swing — a wide-ranging rolling recession so to speak. So, what does this mean for those looking to build their dream home? Does an economic recession even matter to the real estate market?
To answer these questions and help you plan accordingly, let’s dive right into the facts.
What’s a rolling recession?
A recession in general is when we see a serious, sustained downturn in economic activity across the economy at large. A rolling recession, on the other hand, is when we see that decline in economic activity in certain regions or industries but not in others. During a rolling recession, regions and industries take turns being affected while the national economy as a whole avoids a full-out recession.
Are we in a rolling recession now?
There’s data to support the rolling recession idea. Liz Ann Sonders, Chief Investment Strategist at Charles Schwab, is one expert who believes we’re in one now, as she told Bloomberg Television. Housing, manufacturing, and tech have all seen downturns, but the economy at large has held, with the labor market strong.
If we are in a rolling recession, we could see these industries begin to normalize while other industries experience downturns.
What does this mean for the housing market?
Thanks to several factors including increased interest rates, the housing market has already experienced a downturn. If we’re in a rolling recession, we may see the housing market go back up without the economy at large ever entering a true recession. We’ve already seen some positive signs for the housing market that could support this theory.
If you’re looking at building a home in Virginia, specifically, you should know that our real estate market is much stronger than the national real estate market.
What does this mean for you?
If you’re considering building a home, there’s no time like the present. Remember that an economic recession and a housing downturn don’t necessarily go hand in hand.
Plus, what happens with the recession remains to be seen, but local data shows that building a home in Virginia is a good investment no matter the economic climate. If you’d like to talk with us about your options and about starting the process, please contact us at email@example.com or 800-406-8555.
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