Why The Housing Market Now Wont Experience A Recession

Dated: March 6 2024

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In recent years, there has been a lot of talk about the possibility of a recession. This has left many people concerned, particularly those in the housing market who fear a repeat of the 2008 crisis. However, experts are projecting a different outcome this time around. In this article, we will explore the reasons why there won't be a recession that tanks the housing market.

The Strength of the Economy

According to Jacob Channel, a Senior Economist at LendingTree, the fundamentals of the economy are currently strong. Despite some hiccups, the economy is performing better than people give it credit for1. This sentiment is echoed by a recent survey from the Wall Street Journal, which shows that only 39% of economists predict a recession in the next year, down from 61% just one year ago2.

Unemployment Rate Comparison

One of the key indicators of economic stability is the unemployment rate. Comparing the current rate with historical data, it is evident that the unemployment rate today is still very low3. The average unemployment rate since 1948 is around 5.7%, while the rate after the 2008 financial crisis peaked at 8.3%4. In comparison, the current rate is much lower, indicating a healthier job market.

Projections for Unemployment Rate

Looking ahead, economists do not expect the unemployment rate to come close to the long-term average over the next three years Blog author image

Nick Hailey

Nick is the Founder and CEO of Black Castle Properties. He is also a Licensed Real Estate Broker with over 9 years of experience and an extensive background in sales. He understands the complexities o....

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