While recent news points towards an oncoming recession, many still think that the housing market won’t suffer the brunt of the impact. Construction is up for single-family homes, Baby Boomers are looking to move, and dropping mortgage rates are doing what they are meant to do; stimulate the housing market. Even with a recession looming, movers who provide quality service and are consistent with their marketing will be able to keep their schedules full.
While reports show an overall decline in new house construction in July, single-family dwellings were up 1.3%. The biggest drop was seen in multi-dwelling projects of five or more units.
Recent negative news has spiked fear that the next economic downturn is imminent. Recessions don't always impact the housing market with the same force as the job market or other sectors of the economy. See what the experts think is a sign that the housing market could be safe.
Even with falling mortgage rates, both buyers and homebuilders are starting to pull back. Consumers are starting to worry about the economy and the percentage of those who plan to buy in the next year is down two percent.
It’s not all doom and gloom. More Baby Boomers are looking to not “downsize,” but “rightsize” in their retirement years. Builder confidence is solid in the 55+ market and demand remains strong.
Concerns over the housing market may not be warranted. Homeowners have been responding to dropping interest rates, and homes in pending status have advanced to their best level since mid-2017.