This is a question many buyers, sellers and us realtors have. The high oil prices, the prolonged debt ceiling and the European debt crisis continue to enrage the stock market and raise concerns that the U.S. may suffer a double-dip recession.
MainSt.com interviewed several economists who claim that even if we do enter another recession later this year it won’t be nearly as damaging as the Great Recession in 2008. The reason for that is that the imbalances that drove the previous recession have been corrected. According to Gus Faucher, senior economist at Moody’s Analytics, banks are better capitalized now, the housing market has shed many delinquent homeowners and U.S. corporations have trimmed their payrolls and sitting on cash reserves to help if there is another recession. Furthermore, consumers are spending less and are paying off more of their debt.
The Park Record stated that most local stock and financial experts in Park City, Utah are not worried about another recession. The current events are hurting the market and may affect the unemployment rate but will unlikely cause another recession.
According to Brian Kahn (Jupiter Peak Financial), the current worries about the federal budget and Europe’s debt load don’t need to trouble investors if they know how to trade and benefit from the up’s and down’s. Joe Cronley from Edward Jones, says that right now we are just seeing a very slow growth. The stock market is not the economy. Since companies have money, the economy is not in danger. We just need to motivate the private sector to invest what they have.
After all I don’t think anyone really knows where the economy is headed. But I can say this – for qualified buyers it is definitely a good market. Sellers may wish to wait if they can.
Park City Real Estate has seen the highest numbers in sales since 2007 with a slight increase in median home prices.