A recent article posted by Market Watch is predicting that the next recession will start in the first quarter of 2020 according to Jacob Passy’s article where about half of more than 100 real estate and economics professionals were surveyed by Zillow and research firm Pulsenomics. The survey findings coincide with the survey made by the Wall Street Journal a month earlier where 59% of private sector economists agreed with the timeline.
While housing affordability seems to be a critical issue in most markets across the country, according to a senior economist with Zillow, another housing bust seems unlikely. Economists are predicting that the next recession’s trigger will be the result of monetary policy in the form of a rise in short term interest rates, trade policy, a stock market correction, or a spike in inflation.
Regardless of the cause and even though another real estate bust might not be in our immediate future, an economic downturn almost always effects real estate.