The Recession Is Here… Six Costly Mistakes Home Sellers Make During Recessions And How To Avoid Them
Website design By BotEap.comThe United States is officially in recession. What is a recession? A recession is a contraction of the business cycle or a general economic decline due to a significant drop in spending and other business activities. Most pundits and politicians will blame the Covid-19 crisis for the recession, but even before Covid-19, the proverbial handwriting was on the wall.
Website design By BotEap.comThe United States had more than 120 months of economic growth, which was the longest expansion in modern history. Other indicators, such as the negative yield spread on Treasuries (long-term bonds with lower interest rates than short-term T notes), pointed to an imminent turnaround in the business cycle and an impending recession. The only real question was: when and how bad?
Website design By BotEap.comThen came Covid-19… If the cycle was to change anyway, Covid-19 acted as a huge and unexpected accelerator to make the recession much more immediate and severe.
Website design By BotEap.comInevitably, during recessions, all classes of real estate, including residential homes and condominiums, will be negatively affected, as lower consumer spending and higher unemployment rates affect real estate prices and prices. marketing times.
Website design By BotEap.comHere are six costly mistakes sellers of homes and other real estate make during recessions and how to avoid them:
Website design By BotEap.comMistake #1: This will pass and the real estate market will be hot again soon
Website design By BotEap.comThe first thing to remember is that real estate cycles are much longer than general business cycles. Even if the general economy recovers, which it always does eventually, a typical real estate cycle takes 10-15 years. The cycle has four key stages: upper, declining, lower, and ascending.
Website design By BotEap.comConsider the last real estate cycle, which lasted approximately 14 years:
- Website design By BotEap.com2006 – Prices reach the top
- Website design By BotEap.com2006 to 2012 – Price decrease
- Website design By BotEap.com2012 – Prices bottomed out (minimum)
- Website design By BotEap.com2012 to 2019 – Price increase*
- Website design By BotEap.com2020 – Prices reach the top
- Website design By BotEap.com2020 to? – Price decrease