How to Judge the Impact of the Next Economic Slowdown on Housing

We’ve experienced economic growth for almost a decade, which is the longest recovery in the nation’s history. Experts know a recession can’t be too far off, but when will this economic slowdown actually occur?

Pulsenomics just released a special report revealing that nearly 6 out of 10 of the 90 economists, investment strategists, and market analysts surveyed believe the next recession will occur by the end of next year. Here’s the breakdown:

• 9% believe a recession will occur this year
• 50% believe it will occur in 2020
• 35% believe it will occur in 2021
• 6% believe it will occur after 2021

When asked what would trigger the next recession, the three most common responses by those surveyed were:

1. Trade Policy
2. Stock Market Correction
3. Geopolitical Crisis

How might the recession impact real estate?

Challenges in the housing and mortgage markets were major triggers of the last recession. However, a housing slowdown ranked #9 on the list of potential triggers for the next recession, behind such possibilities as fiscal policy and political gridlock.

As far as the impact the recession may have on home values, the experts surveyed indicated home prices would continue to appreciate over the next few years. They called for a 4.1% appreciation rate this year, 2.8% in 2020, and 2.5% in 2021.

Bottom Line

On the same day, in the same survey, the same experts who forecasted a recession happening within the next 18 months also claimed housing will not be the trigger, and home values will still continue to appreciate.

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Empty Nest? 5 Changes Your Home Needs Now That It’s Kid-Free

The house you raised your family in has seen a lot — a lot of love and laughter and maybe a little turmoil. Now that your home is officially kid-free, it is in dire need of some enhancements so you can make a smooth transition from being a full-time parent to having a less hands-on relationship with your children.
Check out these five changes your home is begging for now that you have an empty nest.
First-Floor Guest Bedroom
Think about rearranging the layout of your home now that the kids are out of the house. You might already have plans to turn one of your kids’ bedrooms into a guest bedroom; however, if it’s on the second floor, consider using a room on the first floor. For now, you can use it for guests, but if you plan to stay in your home for the rest of your life, you may want your bedroom to be on the first floor when you get older.
Create Extra Space With Fewer Walls
If you have a few smaller rooms that were once kids’ bedrooms, consider knocking down a wall or two to create one larger space. It makes sense to have lots of smaller rooms if you have a house full of kids, but now that it’s just you or you and your spouse, you can keep one bedroom for guests and create a bigger room to serve a more meaningful purpose, such as a studio, office or home gym.
Kitchen Facelift 
With lots of people in the house, it can be tricky to do any kind of home upgrade or renovation. Now that you have an empty nest, consider making kitchen upgrades that you’ve been putting off. Does the tile need work? Do the cabinets need replacing or maybe just some paint? You could also update old appliances — now is the best time to do whatever needs to be done to bring your kitchen up to date.
Master Bath Enhancements 
With kids out of the house, you will have more time to yourself and hopefully to pamper yourself. Make some updates to the master bathroom by changing the counters and cabinets and/or adding ambient lighting with a dimmer. Add a bench in the shower and a heated towel rack. Replace towels with ones that are plush and soft. Do whatever is necessary to make your bathroom feel more like a spa. You deserve it!
Update Your Most-Used Furniture
Maybe you didn’t want to invest in high-end furniture while you were raising kids because you feared stains and smears on expensive items. However, now is the time to invest in a little luxury. You can transform your home into more of an adults’ house by swapping out some older pieces of furniture for something tasteful and refined.
Looking for even more ways to update your home? Give us a call today! We love sharing our expertise.

Which #kitchen would you rather have: A or B? 🍳

Renting Vs. Buying

There are many benefits to homeownership. One of the top benefits is being able to protect yourself from rising rents by locking in your housing cost for the life of your mortgage.